Germany’s ThyssenKrupp has sold its 49% stake in Brazilian joint venture GalvaSud to co-owner Companhia Siderurgica Nacional (CSN), the steel maker reportedly said on Friday.
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According to Reuters, the group said it sold the stake because it was uncertain about the development of the motor industry in Brazil and the Mercosur region, which also includes Argentina, Uruguay and Paraguay.
ThyssenKrupp reportedly said it was questionable when the region would return to sustainable growth.
“After expanding rapidly in the nineties, the Brazilian auto industry built up large capacities, which have not been fully utilised for the past three years,” ThyssenKrupp said in a statement cited by the news agency.
The auction of the stake in GalvaSud was also started after disagreements between ThyssenKrupp and CSN emerged last autumn, ThyssenKrupp reportedly said.
“Our trust was destroyed by the long row over the deposing of the company’s chief executive, who had been appointed by us and was doing an excellent job,” it said, adding that there had also been a disagreement over supplies of materials, Reuters said.
The company reportedly said it would in future focus on expanding in growth market China, where it began operating two sites last year.
