Evraz acquires metal service company INPROM (5155Y)
23 December 2010 - 9:33PM
UK Regulatory
TIDMEVR
RNS Number : 5155Y
Evraz Group S.A.
23 December 2010
Evraz Creates a Joint Venture onsisting of EvrazMetall
and INPROM Distribution Networks
23 December 2010 - Evraz Group S.A. (LSE: EVR) ("Evraz")
announces the closing of a deal to acquire 100% of the shares of
Cassar World Investments Corp., which controls 99.9% of OAO INPROM,
a leading metal service company in Russia. As a result, a joint
venture consisting of the assets of EvrazMetall and INPROM has been
created. Evraz will have a 75% stake in the combined company and
INPROM shareholders with have 25% of shares.
The joint venture will be the largest steel distribution company
in the CIS. In 2010, total steel sales of the combined company are
expected to amount to approximately 1.2 million tonnes.
EvrazMetall, a network of metal trading companies (former
Carbofer Metall acquired by Evraz in October 2009), consists of 33
branches in Russia and the CIS countries (Kazakhstan).
INPROM has a chain of 27 metal centres, located in the
industrially developed regions of Russia, and distributes products
of Russian and CIS steel mills to 20,000 customers across all
sectors of the economy. INPROM has modern steel processing
equipment and is the largest metal service company in Russia for
metal processing services. The location of INPROM's metal centres
in regions with a high market capacity and its professional team
are an important competitive advantage. In 2010, INPROM's sales are
expected to exceed 400,000 tonnes with Evraz's products accounting
for one third of those sales.
As a result of the deal, Evraz will expand its presence in the
steel retail trade in Russia, and in particular in the European
part and the dynamically developing southern region. It is also
expected that it will see an increase in profitability from high
margin steel product sales.
###
For further information:
Media contact: Alex Agoureev VP, Public Relations +7 985 122
4822 media@evraz.com
Investor contact: Alexander Boreyko Director, Investor Relations
+7 495 232 1370
ir@evraz.com
Evraz Group S.A. is a large vertically-integrated steel, mining
and vanadium business with operations in the Russian Federation,
Ukraine, Europe, USA, Canada and South Africa. The Company was
ranked the 14th largest steel producer in the world based on crude
steel production of 15.3 million tonnes in 2009. Evraz's internal
consumption of iron ore and coking coal is covered by its mining
operations. Evraz's consolidated revenues for the nine months ended
30 September 2010 were US$9,729 million and consolidated adjusted
EBITDA amounted to US$1,766 million.
This information is provided by RNS
The company news service from the London Stock Exchange
END
ACQEAEADADEEFFF
Evraz (LSE:EVR)
Historical Stock Chart
From Sep 2024 to Oct 2024
Evraz (LSE:EVR)
Historical Stock Chart
From Oct 2023 to Oct 2024