ArcelorMittal and Severstal-metiz today announced that they have agreed on the sale of ArcelorMittal Wire Solutions’ 50% stake in steelcord producer TrefilArbed Rus to Severstal-metiz.
The joint venture was established in 2005 when ArcelorMittal Wire Solutions joined Severstal-metiz to develop TA Rus on the Russian steelcord market, giving their JV access to specific technologies provided by ArcelorMittal Wire Solutions. This agreement will allow both companies to focus on their current wire strategies.
Severstal-metiz aims to develop high value-added products for key Russian and CIS domestic markets. ArcelorMittal Wire Solutions’ main growth area in steelcord is Asia.
TA Rus is located at Severstal-metiz’ Orel site. It will change its name to Orelcord. Its revenues totalled 842,5 million rubles, or about 31 million US dollars, in 2006. In 2006, the company obtained the ISO 9001 quality management certification.
About Severstal-metiz (Russia)
The Severstal-metiz company (the metalware division of Severstal) was founded in 2004. The company also incorporates the Ukrainian-based Dneprometiz and the British Carrington Wire Limited companies.
One of the biggest players in the European and CIS markets, “Severstal-metiz” manages businesses which account for over 26% of Russia’s metalware output (40% of export output) and employ more than 11 000people.
The first 9 months results for 2007 for the Severstal-metiz group of companies show that EBITDA increased 15% compared with the similar period last year, amounting to 54 million US dollars. Volume shipment in the first 9 months of 2007 totalled 796.1 thousand tons, 15 % less than same period in 2006. Sales revenues for this accounting period were 754 million US dollars, 25 % ahead of the same period in the previous year.
The chairman of the Board of Directors is Anatoliy Kruchinin.
CEO of the “Severstal-metiz” company is Olga Naumova.
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ArcelorMittal is the world's number one steel company, with 320,000 employees in more than 60 countries. The company brings together the world's number one and number two steel companies, Arcelor and Mittal Steel.
ArcelorMittal is the leader in all major global markets, including automotive, construction, household appliances and packaging, with leading R&D and technology, as well as sizeable captive supplies of raw materials and outstanding distribution networks. An industrial presence in 27 European, Asian, African and American countries exposes the company to all the key steel markets, from emerging to mature, positions it will be looking to develop in the high-growth Chinese and Indian markets.
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