Japan-based Nippon Steel is said to be open to buying Techint’s stake in Brazil flats steelmaker Usiminas, according to a media report.
The Japanese steelmaker reportedly wants to avoid Usiminas having to file for bankruptcy protection. Nippon and Techint have been disputing the control of the struggling steelmaker.
Usiminas said in a conference call this week it is expecting more capital to be injected at the company, meeting in March to discuss possibilities including a capital increase and a loan from the company’s shareholders on inter-company operations.
A renegotiation of the company’s debts, a cut in expenses are also part of the company’s plan to the on-going year.
An audit from KPMG said there’s a “significant doubt” regarding the future of the flats producer.