BRAZIL · BUSINESS
Key Facts
- —What happened: Benjamin Steinbruch has stepped down as chief executive of CSN, Brazil’s top steel and mining company.
- —The scale: He led CSN for 24 years, part of 33 years of family control since a 1993 sale.
- —What it means: Fabio Schvartsman is CSN’s new chief executive, taking over daily operations from Steinbruch this month.
- —The catch: Steinbruch remains on CSN’s board as chairman, keeping heavy influence over the company’s long-term strategy.
- —The new chief: Schvartsman previously ran Vale, leaving after a 2019 dam disaster that killed about 270 people.
Benjamin Steinbruch has handed CSN’s chief executive job to Fabio Schvartsman, staying on as board chairman.
CSN stands for Companhia Siderúrgica Nacional, one of Brazil’s largest steel and mining companies. Benjamin Steinbruch just stepped down as its chief executive officer (CEO).
Steinbruch held that job for 24 years before stepping down this past Thursday. Fabio Schvartsman is now CSN’s new CEO, Reuters and Brazilian outlets reported.
The move ends decades of one-family leadership at one of Brazil’s biggest industrial names. It also puts someone outside the Steinbruch family in charge of daily operations for the first time in decades.
A New CEO With a Tough Past at Vale
Schvartsman previously served as chief executive of the mining giant Vale. He stepped down from that role after the 2019 Brumadinho dam disaster.
That dam collapse killed about 270 people in Minas Gerais state. Steinbruch called Schvartsman honest and well regarded by investors, according to Brazil Journal.
Schvartsman also led the paper company Klabin for six years. Earlier in his career, he spent 22 years at the company Ultrapar.
Schvartsman currently also sits on the board of the fuel distributor Vibra Energia. Analysts said his arrival finally answers questions about CSN’s long-unclear succession plan.
The investment bank BTG Pactual called Schvartsman a highly respected, pro-market executive. It said he understands what CSN needs to rebuild investor confidence.
A Family That Has Run CSN Since 1993
Steinbruch’s family took control of CSN when Brazil sold it in 1993. The government auctioned the company for about $1 billion at the time.
The state had founded CSN in 1941 as Brazil’s first big steelmaker. Steinbruch’s family has controlled its board for 33 years since that sale.
He now becomes CSN’s board chairman instead of leaving the company entirely. As chairman, Steinbruch will still help shape CSN’s long-term strategy.
State-run CSN was privatized as part of a wider 1990s sell-off in Brazil. That wave included other big state companies sold to private investors.
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Investors React As Debt Cuts Loom
CSN shares jumped sharply on the announcement, leading gains on Brazil’s stock exchange. The investment bank BTG Pactual called the change unexpected but welcome.
Schvartsman’s main task now is cutting CSN’s heavy debt load. CSN owes roughly R$42 billion (about US$8.2 billion) at current exchange rates.
The company plans to sell its cement unit to help cut that debt. That cement business alone could be worth about R$12 billion (about US$2.3 billion).
Schvartsman may later sell stakes in CSN’s energy and logistics units too. He could also seek a partner for CSN’s steel business, reports say.
Investors are also watching whether Schvartsman keeps enough independence from the board. Steinbruch still owns a controlling stake in CSN through his family’s holding firm.
More: Brazil news in English, every day from The Rio Times.
Frequently Asked Questions
What is CSN?
CSN stands for Companhia Siderúrgica Nacional, or National Steel Company in English. It is one of Brazil’s largest steel and mining companies.
Why did Benjamin Steinbruch step down as CEO?
Steinbruch decided to hand day-to-day control to a professional manager after 24 years as CEO. He remains involved as CSN’s new board chairman.
Does Steinbruch still control CSN?
Yes, Steinbruch and his family remain CSN’s controlling shareholders even after the leadership change. As chairman, he still helps shape the company’s long-term strategy.
Sources: Reuters, Bloomberg, Brazil Journal, NeoFeed, BTG Pactual.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error
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