Cleveland company dealt, includes plant in Warren
CLEVELAND — Cleveland-Cliffs is making its second billion-dollar acquisition in less than a year with the purchase of steelmaker ArcelorMittal’s U.S. business for about $1.4 billion in cash and stock.
About a third of the deal will be an upfront cash payment of about $505 million, according to the companies. ArcelorMittal, based in Luxembourg, also will receive stock in Cleveland-Cliffs valued at about $873 million.
In return, the Cleveland iron ore mining company will get six steelmaking facilities, eight finishing facilities, two iron ore mining and pelletizing operations, and three coal and coke-making operations.
One of those coke plants is in on Main Avenue SW in Warren. There, ArcelorMittal Warren produces coke for furnaces at ArcelorMittal Cleveland to make steel. The facility can produce about 550,000 tons of coke per year, made by baking coal until the impurities are burned off.
The facility employs about 175 workers. The Warren plant site dates back to the 1920s, the website states.
The deal is expected to close in the fourth quarter of 2020 and will make Cleveland-Cliffs the largest producer of flat-rolled steel and iron ore pellet in North America, the company said.
“The acquisition of ArcelorMittal USA amplifies our position in the discerning automotive steel marketplace, and further improves our position in important U.S. markets such as construction, appliances, infrastructure, machinery and equipment,” CEO Lourenco Goncalves said.
ArcelorMittal USA averaged more than $10 billion in revenue in 2018 and 2019. Cleveland-Cliffs does about $2 billion in annual revenue. Late last year, Cleveland-Cliffs bought AK Steel in a stock deal valued at about $1.1 billion.