Cia. Siderúrgica Nacional is considering selling its Lusosider Projectos Siderúrgicos SA flat steel subsidiary in Portugal in order to cut its debt, Metal Bulletin reported May 15, citing CEO Benjamin Steinbruch.
The decision is also motivated by the imposition of the European Union's anti-dumping tariffs against Brazil-origin hot-rolled coil. Duties assigned to CSN amount to €53.40 per tonne.
"The asset is still profitable, but due to this duty it does not make sense for us to export HRC [to feed the Lusosider subsidiary]," said Steinbruch.
The news comes after the Brazilian firm agreed to sell its Indiana-based unit to Steel Dynamics Inc. for US$400 million.
Steinbruch, who flagged asset sales of 2 billion to 3 billion reais this year to slash its debt in March, recently vowed to proceed with the deleveraging of the company by July.
CSN booked a 1,159% year-over-year increase in its first-quarter profit to 1.49 billion reais on the back of gain accrued from the adjustment of the fair value of shares in Usinas Siderúrgicas de Minas Gerais SA.
As of May 15, US$1 was equivalent to 3.67 Brazilian reais.
