Brazilian steelmaker CSN to sell cement unit to cut debt

Companhia Siderúrgica Nacional will initiate the sale of its controlling interest in CSN Cimentos as part of a strategy to reduce group leverage. The process is scheduled to begin in January, with signing expected in the third or fourth quarter of the year, the company has announced.

The sale of CSN Cimentos is one of the main steps in a broader plan that also includes the divestment of a relevant stake in CSN Infraestrutura. The company's objective is to reduce gross debt by approximately Real 15 billion to Real 18 billion through asset sales.

CSN Cimentos operates seven integrated cement plants in Brazil, with an installed capacity of 17 million metric tons/year. The company's logistics network includes six quarries, 27 distribution centers, and three logistics terminals.

In a market statement on Jan. 15, CSN said the sale aligns with its focus on cash flow generation from core businesses, reduction of leverage, and disciplined capital allocation. Financial advisors have been retained to support the transaction. Proceeds from the divestment will be used to lower debt and support investment in other segments.