Although its industry operations will change hands, ArcelorMittal will have one final award in the Region – this research and development center on Columbus Drive and Cline Avenue in East Chicago.
“ArcelorMittal R&D in East Chicago is not part of the transaction and will still be part of ArcelorMittal’s global R&D organization,” ArcelorMittal spokesman William Steers said.
The latest round of merger in the steel industry that has long been declining will make Cleveland-Cliff ̵1; a mineral mining and pelletization company for most of its 173 years of existence – the largest flat-rolling steelmaker in the North America, with shipments of 17 million tonnes last year. The company, which owns mines in Minnesota and Michigan and sends its minerals to steel mills along the Great Lakes, is also the largest manufacturer of iron ore pellets in North America with a capacity of 28 million tons .
Cleveland-Cliff buys six steel mills, eight finishing equipment, two iron mining and pelletizing operations and three coal operations and cokemaking from ArcelorMittal for $ 505 million cash, $ 373 million non-voting stock and 78.2 million shares of common Cleveland-Cliff stock The value of the deal enterprise, which includes debt and market capitalization, is estimated at approximately $ 3.3 billion.
ArcelorMittal USA has earned $ 10.4 billion in revenue over the past two years, including $ 700 million in revenue before interest, taxes, depreciation and amortization, or EBITDA. Cleveland-Cliff expects the merger to result in approximately $ 150 million in annual cost savings, which would traditionally be achieved somehow by removing redundant positions, even the former steel mills. of ArcelorMittal USA will no longer pay market prices for iron ore, the most basic component of steel.