Australia-based mining and materials company Arrium Limited has announced that it has entered into an agreement for the sale of its wire ropes business to Belgium-based Bekaert, one of the world's largest steel cord and wire manufacturers, for A$90 million. The sale is expected to be completed by end of the March 2015 quarter.
Arrium's wire ropes business based in Newcastle, New South Wales, is a leading manufacturer of high performance ropes in Australia with a history spanning more than 90 years. The business employs approximately 100 people and Bekaert will offer all employees ongoing employment.
Arrium's managing director and CEO, Andrew Roberts, said, ""Wire ropes is a quality business, however it lies outside our strategic focus for future growth in mining consumables. Today's announced sale is consistent with our focus on reducing debt, and builds on our good progress with asset divestments. Arrium's asset divestment proceeds for the financial year 2014-15 will increase to at least A$150 million following completion of this sale."
According to Arrium's statement, the wire ropes business has strong leverage to the mineral extraction industry, particularly through its market-leading drag line and shovel ropes. This acquisition builds on Bekaert's existing global position in wire ropes.