ArcelorMittal to acquire Brazilian pipe producer Tuper

The company will acquire the remaining 60% of the shares that were not under its control

Global steelmaker ArcelorMittal will become the owner of Brazilian pipe manufacturer Tuper by acquiring the remaining 60% stake in the latter. This is stated in the message of Tuper.

Tuper was severely affected by the economic crisis that hit Brazil in 2015. In 2016, the company established a strategic partnership with ArcelorMittal, which then acquired a 40% stake in the pipe manufacturer.

Following the acquisition, subject to regulatory approval, Tuper will become a wholly owned subsidiary of ArcelorMittal. In March, the transaction was submitted to the Administrative Council for Economic Defense (CADE) for approval, and the response is expected to come within 60-90 days.

The parties are working to ensure a smooth transition of operations and job security for approximately 1,800 employees.

Founded in 1971, Tuper began as a manufacturer of automotive exhaust systems. Over the years, the company has expanded its product range to include welded steel pipes, structural steel and galvanized steel. It currently operates three industrial plants in São Bento do Sul with an annual production capacity of 826 thousand tons, as well as 21 distribution centers across Brazil.

In February of this year, ArcelorMittal’s Brazilian unit announced plans to invest approximately R$3.8 billion to R$4 billion ($661-696 million) in the Tubarão unit (Espirito Santo state). The project to build a new cold rolling mill and a new coating line will be one of the most important for the group and is part of the company’s strategic plan in Brazil, which envisages total investments of R$25 billion in 2022-2028.