ArcelorMittal, Gerdau sell US steel mill Gallatin for $770 million

World's biggest steel producer ArcelorMittal along with Brazil's Gerdau has completed sale of their 50 per cent stakes in US-based Gallatin to Nucor Corporation for $770 million as part of its strategy to divest non-core assets.

"ArcelorMittal and Gerdau have completed the sale of their respective 50 per cent interests in Gallatin Steel Company ("Gallatin") to Nucor Corporation. The sale was completed for a total cash consideration of $770 million," the steel giant said in a statement.

Gallatin Steel is a joint venture between ArcelorMittal and Gerdau. Gallatin is a flat rolled mini-mill located in Gallatin County, Kentucky, USA that melts scrap, pig iron and hot briquetted iron from various sources, and processes the material to produce flat rolled steel.

It produces a wide range of steels from low to high carbon grades with an annual capacity of around 1.8 million tonnes.

"The sale of Gallatin unlocks substantial value for ArcelorMittal's shareholders and is consistent with ArcelorMittal's stated strategy of selective divestment of non-core assets," Aditya Mittal, CFO of ArcelorMittal had said earlier.

The decision to sell Gallatin was made in order for Gerdau to focus on its core assets in North America, Gerdau's Chief Executive Officer (CEO) Andre B Gerdau Johannpeter said.

Gerdau is a leading manufacturer of long steel in the Americas and a major global supplier of special long steels.

The company recently began operations in two new Brazilian markets, with the production of flat steel and the expansion of its iron mining activities.

Gerdau has industrial operations in 14 countries across the Americas, Europe and Asia with a combined installed capacity of more than 25 million tonnes of steel per year.

It is also Latin America's biggest recycler and, worldwide, transforms millions of tonnes of scrap metal into steel every year.

ArcelorMittal is the world's leading steel and mining company, with a presence in more than 60 countries and an industrial footprint in over 20 countries.