Austria-based steelmaker Voestalpine is in advanced negotiations to sell an 80pc stake in its Corpus Christi, Texas, hot briquetted iron (HBI) plant.
The company will look to retain a certain volume of HBI from the 2mn metric tonnes (t)/yr (2.2mn short tons/yr) Corpus Christi plant for use in decarbonizing its integrated steel plants in Linz and Donawitz, Austria.
HBI is an iron ore-based metallic feedstock used by electric arc furnace (EAF) and some integrated steelmaking operations. Voestalpine began operations at the Corpus Christi facility in October 2016.
The potential buyer was not named. EAF steelmaker Steel Dynamics (SDI) recently started up its new 3mn st/yr flat-rolled mill in Sinton, Texas, less than 20 miles northwest of Voestalpine's HBI plant. Integrated steelmaker US Steel is also building a new 3mn st/yr flat-rolled mill in Blytheville, Arkansas, 700 miles northeast of Voestalpine's plant, which could be fed by barge traffic from Corpus Christi.
Voestalpine was forced to write down $190.5mn in value on the HBI plant in mid-2021, citing the deteriorating HBI spot market compared to the scrap and iron ore price ratio during the Covid-19 pandemic. In November, chief financial officer Robert Ottel said demand had improved and the company expected further benefits from increased US EAF steel production with new steel mills being built.
In December, Voestalpine paid $16.8mn to settle a class-action lawsuit over damage caused by dust from its Corpus Christi plant. The company denied all allegations and any violations of the law asserted by the plaintiffs despite reaching a settlement.
