Companhia Siderúrgica Nacional

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Companhia Siderúrgica Nacional (CSN) is the second major steel-maker company in Brazil.^[1] Its main plant is located in the city of Volta Redonda, in the state of Rio de Janeiro. Its current CEO is Benjamin Steinbruch.^{[citation needed]}

Contents 1 History 1.1 Foundation 1.2 Privatisation 2 Production 3 Holding 4 Bid for Corus 5 References 6 External links

[edit] History

[edit] Foundation

It was created as a state-owned company in April 9, 1941, during the "Estado Novo", by Brazilian president, Getulio Vargas, after an agreement between the American and Brazilian governments for the construction of a facility that would provide steel for the Allies during the Second World War and later be an aid for Brazil's development. It begun its operations in 1946, under Eurico Gaspar Dutra's presidency.

[edit] Privatisation

It was a state-owned firm until 1993, when it was privatised by Itamar Franco's government, during the National Program for Privatisation led by the federal government, started by Fernando Collor and continued by Franco. ^[2]

Its main factory are located in Volta Redonda, at the Vale do Paraíba region, southern Rio de Janeiro state, its iron mines at Congonhas and Arcos, both of them cities in the Minas Gerais state, and the coal mines at Siderópolis, Santa Catarina state.

[edit] Production

CSN primarily operates as an integrated steel producer in Brazil. It produces a line of steel products, including slabs, which are semi-finished products used for processing hot-rolled, cold-rolled, or coated coils and sheet products; hot-rolled products comprising heavy-gauge hot-rolled coils and sheets, and light-gauge hot-rolled coils and sheets; cold-rolled products, including cold-rolled coils and sheets; and galvanized products consisting of flat-rolled steel coated with zinc or a zinc-based alloy. The company also offers tin mill products, including tin plate, tin free steel, low tin coated steel, and black plate products. CSN also mines iron ore, limestone, and dolomite, as well as maintains strategic investments in railroads and power supply companies. The company sells its steel products to customers in Brazil and 71 other countries in North America, Europe, and Asia through its sales force and distributors. It is considered one of the most productive steel-makers in the world, produces more than 6 million tons of raw steel and more than 5 million tons of laminates per year.

[edit] Holding

CSN owns different firms, such as GalvaSud (in Porto Real - Rio de Janeiro), Inal (in Mogi das Cruzes - São Paolo and Barra Mansa - Rio de Janeiro), CSN PARANÁ (in Araucária - Paraná) and container (TECON) and coal (TECAR) terminals in the Itaguaí port (in Itaguaí - Rio de Janeiro). It also has control through shareholding in MRS Logistics, CFN, in railway transportation, the hydroelectric generators of Igarapava between the São Paulo and Minas Gerais states and Itá, between Santa Catarina and Rio Grande do Sul states, and fabrics in the United States and Portugal.

[edit] Bid for Corus

CSN has bid for the Anglo-Dutch steel firm Corus, valuing it at 9.6 billion dollars in response to Tata Steel's new offer on December 11. Tata Steel and Corus had already been preparing a merger agreement when CSN barged in on November 17. CSN's bid will be formalised, if Corus' board cooperates, after a due diligence is completed.^[3] The Corus board was supposed to vote the Tata offer on December 4, but has postponed its meeting for December 20, thus granting more time for CSN to formalise its bid.^[4]

The merchant bankers of CSN have purchased about 15% shares of Corus from the open market, clearly indicating the strong intent it has in the deal.^{[citation needed]}

As of 11th December 2006^[5], the board of Corus have formally announced their recommendation of acceptance of the bid by CSN to the amount of 515p per share (approx £4.9 billion total), although it has also confirmed that CSN already owns 3.8% of those shares through previous purchases on the open market. This bid was in response to Tata's increased offer of 500p per share. Agreement has also been reached with both of Corus' main pension bodies on the acquisition.

Finally, on 30th January, both Tata Steel and CSN will bid for Corus in a closed-door, nine-round auction in London. Both Tata Steel and CSN are expected to considerably up the offer from the latest one of 515 pence. However, doubts are already being raised about the bid winner eventually proving to be a loser, owing to unrealistic valuation of Corus.

In the bidding war it was India's Tata Steel which won the bid in an auction round. It outbidded CSN at 608 pence per share.

[edit] References

[edit] External links

• Companhia Siderúrgica Nacional Official Site