The Russian mining and steel producer Evraz Group has announced the closure of the deal for the acquisition of one of the largest Russian steel distribution networks Carbofer Metall from Luxembourg-based Carbofer Group, a private company that trades steel and raw material, invests in projects in those industries and provides shipping and financial services.
The acquisition of Carbofer Metall "is in line with Evraz's plans to increase direct sales of its steel products to end customers in Russia," reads the company's release.
As SteelOrbis previously reported, Carbofer Group's Russian steel distribution network Carbofer Metall consists of six companies that form a network of 35 warehouses in key regions of Russia and includes one warehouse in Kazakhstan. In 2008, Carbofer Metall shipped 1.2 million mt of long products and generated revenues of $1.07 billion.
In 2008, through Carbofer Metall, Evraz sold approximately 25 percent of its construction products produced in Russia.