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Nippon Steel & Sumitomo Metal calls for command to alternate at Usiminas¡ªThe 18th China(Guangzhou)Int¡¯l Heat Treatment, Industrial Furnace Exhibition
5/11/2017 heat treatment expo-furnace expo |
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Reuters reported that Nippon Steel & Sumitomo Metal Corp wants to implement a system to alternate command at Brazilian steelmaker Usinas Siderurgicas de Minas Gerais SA with fellow controlling shareholder Ternium SA. Mr Kazuhiro Egawa, Nippon Steel''s newly sworn-in head of operations for the Americas, told Reuters that ¡°An agreement with Ternium on how to alternate power at Usiminas without having an option to buy out one another needs to be reached quickly.¡±
Mr Egawa said a March decision by the board of Usiminas to replace a Nippon Steel-backed executive as chief executive officer was illegal. He rebuffed Ternium''s call for the implementation of an exit clause in their shareholder accord, noting that Nippon Steel has no intentions to leave Brazil or Usiminas.
He said "We have had all type of joint ventures around the world, but the only place where we''ve had problems is Brazil. Usiminas remains our main concern in the Americas."
Mr Egawa declined to list alternatives to end the conflict with Ternium but cited a rotating command as a feasible option. He will focus on convincing Usiminas board members who represent the steelmaker''s employees to endorse such a mechanism.
Almost three years of boardroom battles between Ternium and Nippon Steel for control of Usiminas have distracted management and hampered efforts to buffer Brazil''s largest listed maker of flat steel from the country''s worst recession on record. Both Nippon Steel and Ternium have tried to secure power over the debt-laden steelmaker through court decisions.
¡ªThe
18th China(Guangzhou)Int¡¯l Heat Treatment, Industrial Furnace Exhibition
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