Posted on 31 Jul 2023
Abu Dhabi-based steelmaker Emirates Steel Arkan (ESA) has stopped actively negotiating with thyssenkrupp to buy a stake in the German conglomerate's steel unit, according to reports.
Due to pension liabilities and other complexities of the business, ESA has walked away from a stake acquisition, Bloomberg reports.
ESA declined to comment when approached by Kallanish.
ESA had aimed to build a strategic partnership with thyssenkrupp. In April, ESA chief executive Saeed Al Remeithi confirmed the talks were ongoing in the scope of ESA's ambitious growth strategy to capture the emerging opportunities in sustainable, low-emission steel products over the coming years (see Kallanish passim).
Prior to this, Bloomberg reported that ESA could table a formal bid for thyssenkrupp’s steel unit within months, with the aim of supplying feedstock produced from renewable energy to be processed into automotive steel in Germany.
State-backed long steel producer ESA is the sole fully integrated mill in the United Arab Emirates with a 3.5 million tonnes/year production capacity. The company supplies 60% of the rebar in the domestic market and exports sections, rebar and wire rod to 70 countries. ESA has three direct reduced iron modules with a total 4m t/y production capacity.
The company is assessing its planned flat steelmaking investment, with the final decision expected in 2023. In May, Kallanish learned that Turkey’s Tosyalı and ESA were in talks for a joint venture flats investment in Abu Dhabi.
Source:Kallanish
