Steel production recovered as auto plants resumed operations, Cleveland-Cliffs CEO says

  • “We have been through a very profitable quarter and very strong in terms of the recovery of demand particularly in automotive,” Cleveland-Cliffs CEO Lourenco Goncalves told CNBC.
  • “When automotive shut down in this country, we were forced to reduce our output” but “Q3 has been a completely different story,” he said on “Closing Bell.
  • Cleveland-Cliffs, the largest U.S. producer of iron ore pellets, announced a $1.4 billion purchase of the U.S. assets of ArcelorMittal SA, the world’s largest steelmaker.

Cleveland-Cliffs CEO on the decision and timing of its Arcelormittal deal

UP NEXT

UP NEXT

Steel production has rebounded alongside the recovery in automotive production this quarter, Cleveland-Cliffs CEO Lourenco Goncalves told CNBC Monday.

Loading...

Load Error

U.S. automakers are sprinting to re-stock showrooms and get back on production schedule after plants were shut down earlier this year as the country took action to slow the spread of a novel coronavirus.

Read More

Read More

Why Cleveland-Cliffs is buying ArcelorMittal USA for $1.4 billion

Cleveland-Cliffs Inc. will buy the U.S. operations of ArcelorMittal SA for $1.4 billion in cash and shares to become the biggest flat-rolled steel producer in North America.

Ohio-based Cleveland-Cliffs expects its second major deal in less than a year to boost sales to the key automotive market.

Earlier this year, the global steel industry saw its biggest slump in production in a decade as demand from key consumers, including automakers, was hit hard by coronavirus lockdowns. The transaction is expected to close by the end of this year and will save the combined entity about $150 million in annual costs.

“Steelmaking is a business where production volume, operational diversification, dilution of fixed costs, and technical expertise matter above all else,” Cleveland-Cliffs Chairman Lourenco Goncalves said in a statement. “This transaction achieves all of these.”

Cleveland-Cliffs will pay about $873 million of common and non-voting preferred stock, and $505 million in

Read More

Read More