Nippon Steel (NSSMC), a major shareholder at Brazil flats producer Usiminas, admitted on Tuesday during an event in Sao Paulo that the steelmaker’s assets could be split in order to solve a two-year fight between NSSMC and Ternium, which is also a controlling shareholder at the company.
According to Yoichi Furuta, chief executive at NSSMC in Brazil, the split is a possibility but negotiations haven’t started.
The executive admitted it would make most sense for Nippon to assume the Ipatinga mill located in the city of same name in the state of Minas Gerais, while Ternium could take the Cubatao mill in the city of same name in the state of Sao Paulo, confirming reports by SteelOrbis, which anticipated the move earlier this year.
Furuta also said Usiminas could dismiss more workers, following a recent massive layoff at the Cubatao mill.
Furuta said NSSMC believes in the potential of Brazil and has no intentions to leave the country. He also said NSSMC could even buy the Ternium shares, reinforcing Nippon’s commitment in Usiminas.
NSSMC reiterated this week that the nomination of Sergio Leite as the Usiminas CEO was violation of the company’s shareholders agreement.