May 31 (Reuters) - Steelmaker Nippon Steel & Sumitomo Metal Corp is planning to hold talks on splitting the production assets of Brazilian steelmaker Usiminas with fellow shareholder Ternium SA, Nikkei reported without citing sources.
Under one proposal, Nippon Steel will own an Usiminas mill in Ipatinga and Ternium will get the Cubatao mill in the neighboring state of Sao Paulo, Nikkei reported.
Usiminas has already closed one of its two main steel mills, slowed work at its mines and laid off thousands of employees, its problems exacerbated by Brazil’s worst recession in decades.
Both Nippon Steel and Ternium increasingly see breaking up the company as the best way to resolve the dispute between the two controlling shareholders.
Nippon Steel’s Sao Paulo office declined to comment on the proposals. (Reporting by Manish Parashar in Bengaluru)