National Steel Co. Agrees to $2.35 Billion Cement Unit Sale to China's Huaxin
Brazil's CSN has signed a 10-day exclusivity agreement to sell its cement division to China's Huaxin Building Materials for 12.7 billion reais.
Brazilian industrial conglomerate Companhia Siderúrgica Nacional, widely known as CSN, announced on October 30, 2026, that it has entered into a 10-day exclusivity agreement with China's Huaxin Building Materials Group Co.. The deal outlines the potential sale of the company's cement division, CSN Cimentos Brasil S.A., at an enterprise value of 12.7 billion reais, which is approximately $2.35 billion. According to a Form 6-K filed with the U.S. Securities and Exchange Commission on October 30, 2026, CSN intends to sign the definitive transaction documents within a matter of days.
The divestment is a critical component of a broader deleveraging strategy for CSN, a massive steel, mining, and logistics conglomerate headquartered in São Paulo. The group has been under intense pressure from domestic and international banking creditors to reduce its financial leverage. In the second quarter of 2026, CSN reported a net debt of 42 billion reais, representing an 18.2% increase compared to the same period of the previous year, while its net debt-to-EBITDA ratio climbed to 3.49 times from 3.24 times a year earlier.
A Strategic Shift in Latin American Infrastructure
The acquisition represents a significant expansion for Huaxin Building Materials Group, a major Chinese producer based in Hubei Province that has been steadily growing its international footprint. CSN Cimentos is Brazil's second-largest cement manufacturer, boasting an installed production capacity of 16.3 million tons per year across a nationwide network of 13 plants. Huaxin emerged as the winning bidder following a competitive bidding process launched by CSN in March 2026, beating out rival proposals from local giants like Votorantim Cimentos.
This transaction is the second major asset sale announced by CSN in October 2026, following an agreement earlier in the month to divest its European steel asset, Stahlwerk Thüringen, in Germany. While the cement sale still faces potential regulatory reviews by Brazil's antitrust authority, CADE, and corporate governance hurdles—including reported resistance from Swiss building materials giant Holcim Ltd., which holds a 42% stake in Huaxin—the exclusivity agreement marks the closest the Brazilian conglomerate has come to securing its much-needed financial relief.
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National Steel Company is listed on the New York Stock Exchange under the ticker SID. The company's ongoing asset sales and debt-reduction efforts directly impact its balance sheet structure, which is monitored by international institutional investors and broad emerging market index funds that hold the security.
