VLPNF - Voestalpine said near a sale of majority stake in Texas plant

Austrian specialty steelmaker Voestalpine (OTCPK:VLPNY) is in advanced talks to sell a majority stake in its Texas plant, it said on Sunday, according to a Reuters report. Talks were at an advanced stage, it said, however the financial terms of the deal are not disclosed. "In recent months, voestalpine has been conducting an open-ended market sounding to stabilize the business model of its direct reduction plant in Corpus Christi, Texas," the Austrian firm said in a statement. "As a result of this examination, voestalpine is currently in negotiations to sell 80% of its shares in voestalpine Texas." Voestalpine announced plans to invest €550M in a state-of-the-art plant in Corpus Christi in 2013. However, the plant has since faced setbacks ranging from construction delays to cost overruns totaling more than a billion dollars, as well as a challenging market situation amidst the COVID-19 pandemic. Voestalpine Texas Holding is expected to be reported as a discontinued

For further details see:

Voestalpine said near a sale of majority stake in Texas plant