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Released October 31, 2024 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Cleveland-Cliffs Incorporated's (NYSE:CLF) (Cleveland, Ohio) approximately US$2.5 billion (C$3.4 billion) cash-and-stock acquisition of Stelco Incorporated (Hamilton, Canada) will close November 1, the companies said Wednesday, after receiving final approvals.
Integrated steelmaker Stelco is expected to operate as a wholly-owned subsidiary of Cleveland-Cliffs, the largest supplier of automotive steel in the U.S. The closing announcement comes as the acquisition received approvals from the Investment Canada Act and Strategic Innovation Fund, following three other milestones reached earlier this month: approvals from a Canadian competition regulator; the expiration of the U.S. Department of Justice's antitrust review period; and Cleveland-Cliffs raising the remaining capital to fund the purchase.
"The acquisition of Stelco expands Cliffs' steelmaking footprint and doubles Cliffs' exposure to the flat-rolled spot market," the company said in a July 15 press release announcing the definitive purchase agreement. "Stelco adds capabilities that complement Cliffs' existing operations and product portfolio, while diversifying its customer base across the construction and industrial sectors."
In connection with Cleveland-Cliffs' investment, Stelco will continue operations at its steel works sites in Hamilton and Nanticoke (the latter is known as Lake Erie Works) and make capital investments of at least C$60 million (US$43 million) over the next three years. Hamilton Works is a downstream finishing and coke-making facility, while Lake Erie Works, according to Cleveland-Cliffs, is the newest and lowest-cost integrated steelmaking facility in North America. Stelco ships approximately 2.6 million net tons of flat-rolled steel annually.
As part of Stelco's planned capital spending, equipment additions/upgrades are underway at the Hamilton site, while equipment additions/upgrades at the Lake Erie site are expected to begin in December. The projects will boost operations at the sites and are expected to wrap up in December 2026 and 2027, respectively.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project and Plant databases can read more information on the Hamilton and Lake Erie projects, and click here for the related plant profiles.
Meanwhile, Industrial Info is tracking US$3.4 billion worth of active and planned projects from Cleveland-Cliffs. This includes a proposed major decarbonization project at its Middletown Steel Works in Ohio, which consists of two components. In September, the steelmaker said it "remains fully committed" to the project, which will replace the blast furnace with a 2.5-metric-ton-per-year hydrogen-ready, direct-reduced iron (DRI) plant and a pair of electric melting furnaces (EMF).
Earlier this year, the U.S. Department of Energy pledged up to US$500 million for the effort, and the steelmaker "continues to be in active negotiations with the Department of Energy related to the award-specific terms and conditions. Cliffs remains optimistic about receiving final approvals and proceeding with this carbon-friendly and high-return project."
However, as both projects remain in their early development phases, plenty of factors could alter, delay or eliminate any investment.
Subscribers can read more about the DRI and EMF projects.
Click here for a full list of active and planned projects from Cleveland-Cliffs.
Click here for the reports on all of the projects discussed in this article and here for the plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
Integrated steelmaker Stelco is expected to operate as a wholly-owned subsidiary of Cleveland-Cliffs, the largest supplier of automotive steel in the U.S. The closing announcement comes as the acquisition received approvals from the Investment Canada Act and Strategic Innovation Fund, following three other milestones reached earlier this month: approvals from a Canadian competition regulator; the expiration of the U.S. Department of Justice's antitrust review period; and Cleveland-Cliffs raising the remaining capital to fund the purchase.
"The acquisition of Stelco expands Cliffs' steelmaking footprint and doubles Cliffs' exposure to the flat-rolled spot market," the company said in a July 15 press release announcing the definitive purchase agreement. "Stelco adds capabilities that complement Cliffs' existing operations and product portfolio, while diversifying its customer base across the construction and industrial sectors."
In connection with Cleveland-Cliffs' investment, Stelco will continue operations at its steel works sites in Hamilton and Nanticoke (the latter is known as Lake Erie Works) and make capital investments of at least C$60 million (US$43 million) over the next three years. Hamilton Works is a downstream finishing and coke-making facility, while Lake Erie Works, according to Cleveland-Cliffs, is the newest and lowest-cost integrated steelmaking facility in North America. Stelco ships approximately 2.6 million net tons of flat-rolled steel annually.
As part of Stelco's planned capital spending, equipment additions/upgrades are underway at the Hamilton site, while equipment additions/upgrades at the Lake Erie site are expected to begin in December. The projects will boost operations at the sites and are expected to wrap up in December 2026 and 2027, respectively.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project and Plant databases can read more information on the Hamilton and Lake Erie projects, and click here for the related plant profiles.
Meanwhile, Industrial Info is tracking US$3.4 billion worth of active and planned projects from Cleveland-Cliffs. This includes a proposed major decarbonization project at its Middletown Steel Works in Ohio, which consists of two components. In September, the steelmaker said it "remains fully committed" to the project, which will replace the blast furnace with a 2.5-metric-ton-per-year hydrogen-ready, direct-reduced iron (DRI) plant and a pair of electric melting furnaces (EMF).
Earlier this year, the U.S. Department of Energy pledged up to US$500 million for the effort, and the steelmaker "continues to be in active negotiations with the Department of Energy related to the award-specific terms and conditions. Cliffs remains optimistic about receiving final approvals and proceeding with this carbon-friendly and high-return project."
However, as both projects remain in their early development phases, plenty of factors could alter, delay or eliminate any investment.
Subscribers can read more about the DRI and EMF projects.
Click here for a full list of active and planned projects from Cleveland-Cliffs.
Click here for the reports on all of the projects discussed in this article and here for the plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
