CSN announces Asset sale to reduce financial leverage

Brazilian steel and iron ore producer CSN has announced its intention to sell assets not directly related to its core steel and mining operations. The main goal of this initiative is to reduce financial leverage from the current estimate of 3.14 times EBITDA to the target of 1.83 times.

At the moment, CSN's net financial debt is 37.5 billion Brazilian reais (7.0 billion US dollars), and estimated EBITDA is 12.7 billion Brazilian reais. The company plans to reduce its net financial debt to BRL 19.5 billion through asset sales, which are expected to generate revenue in the range of BRL 15-18 billion.

The sale process will focus on the company's infrastructure and cement segments, with the sale process scheduled to begin in January 2026 and be completed in the second half of the year.

In addition, CSN's strategy involves the formation of a strategic partnership within its steel division.

According to President Benjamin Steinbruch, this move is caused by the current economic conditions, characterized by "stratospheric" interest rates and increased competition from imported products.

The main steel mill in Volta Redonda, Rio de Janeiro State, is considered obsolete, even if one blast furnace is currently idle. Technological modernization is expected as part of future partnerships.

USD = BRL 5,36.