Open / Close Advertisement

Mechel Acquires Sole Ownership of Romanian Ductil Steel

04/09/2008 - Russia’s Mechel OAO purchases a 100% stake in Romania’s Ductil Steel for EUR 142.0 million (USD 221.0 million).

Mechel OAO announced its purchase of a 100% stake in Ductil Steel of Romania for EUR 142.0 million (USD 221.0 million). The purchase price includes 180,000 ordinary shares from Lakewind Limited.
 
Mechel completed the acquisition after receiving approval from the Romanian Antimonopoly Committee on March 28, 2008.
 
“The integration of Ductil Steel’s production and marketing facilities will allow Mechel to further develop its steel business, particularly in Romania and Eastern Europe, and will contribute to the economy of Romania, where two other Mechel’s subsidiaries currently operate – Mechel Targoviste and Mechel Campia Turzii,” commented Mechel Management Co. OOO CEO Vladimir Polin. “In addition, this acquisition will further optimize our existing production chain while reducing costs.”
 
Ductil Steel comprises the Ductil Steel Buzau plant in Buzau, Romania, and the Otelu Rosu plant in Otelu Rosu, Romania. Carbon and low-alloyed steel (rolled and wire) products are produced at the Ductil Steel Buzau plant, while steel and billets for rolling are produced at the Otelu Rosu plant. The billets are supplied to Ductil Steel Buzau and also to third parties both domestically and abroad for further processing.
 
In 2007, Ductil Steel produced approximately 340,000 tonnes of liquid steel, 320,000 tonnes of billets for rolling, 180,000 tonnes of rebars, 105,000 tonnes of different sorts of wire, 68,000 tonnes of wire rod, and 48,000 tonnes of mesh.
 
Mechel said its purchase is in line with further strategic development of the company’s steel segment, and is also aimed at maintaining Mechel’s position in the Romanian rolled and wire product markets.
 
Mechel, one of the leading Russian mining and metals companies, unites producers of coal, iron ore, nickel, steel, rolled products, and hardware. Mechel products are marketed domestically and internationally.