“The final price adjustment is expected to be agreed by the end of April, 2010. On April 19, 2010, the Romanian Competition Council approved the transaction”, the steel company said.
Laminorul Braila plant is located in the southeast Romania on the left side of Danube River.
“The steel plant is in close proximity to Braila river ports, whose facilities allow for embarkation onto freight ships with cargo capacity of up to 5,000 tonnes. Constanta international seaport is also located nearby, thus providing convenient logistics for the plant”, the company said in a press release.
The plant’s main production facilities include two rolling mills with total capacity of over than 380,000 tonnes per year. Rolling mills manufacture structural shapes of different types: beams, channel bars, equal and unequal angles for industrial, civil and machinery construction. This is the only plant in Romania manufacturing special profile (bulb bar) which is used in shipbuilding.
“The acquisition of Laminorul Braila is a one more step in implementation of Mechel’s steel business development strategy, particularly aimed at increasing the share of high margin products in the group’s product portfolio. The plant allows producing downstream products from Mechel’s billets and increase synergies of all Romanian assets of the group. The products manufactured at Laminorul Braila are a good supplement to the product portfolio of Mechel’s steel plants in Romania. The new products – structural shapes and bulb bars – will undoubtedly expand our positions on the market of Romania and other countries of the European Union and also would allow diversifying distribution of our products”, said Victor Dyshlevich, CEO of East-European Steel Division.
He added that the company planned to increase production volume in the future.
In 2009 the plant manufactured more than 50 thousand tonnes of structural shapes. 65% of the plant’s products are delivered to Western and Eastern Europe and the rest is consumed at the domestic market of Romania. Laminorul Braila is sourced with billets supplied by Mechel’s subsidiary in Romania, Mechel Targoviste steel plant. The plant employs more than 570 people.
Mechel is one of the leading Russian companies. Its business includes four segments: mining, steel, ferroalloy and power.
Mechel’s East-European Steel Division consists of the following steel plants: Mechel Targoviste, Mechel Campia Turzii, Ductil Steel Buzau, Otelu Rosu and Mechel Targoviste. Mechel unites producers of coal, iron ore concentrate, nickel, steel, ferrochrome, ferrosilicon, rolled products, hardware, heat and electric power. Mechel products are marketed domestically and internationally.
In October 2008 Mechel opened East-European Steel Division that consists of four steel plants: Mechel Targoviste, Mechel Campia Turzii, Ductil Steel Buzau, Otelu Rosu and Mechel Targoviste. The Division is responsible for the smooth investment management of the four plants, for modernization works, production costs reduction and optimization, supply and distribution, and other adjacent operations.
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