Austria-based steelmaker Voestalpine Group has announced that its Profilform Division has acquired a 75 percent interest as well as the option to acquire the remaining shares in Brazil-based Metincol Distribuidora de Aco Ltda, a specialty manufacturer of high quality products for the tube and section segment. However, the parties have agreed not to disclose the financial value of the transaction.
Commenting on the acquisition, Voestalpine AG stated that until now it has been operating in Brazil with two companies - Villares Metals S.A and VAE Brasil Products Ferroviarios Ltda. The statement went on to add that Brazil plays an important role as a raw material supplier, from which Voestalpine AG procures more than 1.5 million mt of iron ore per annum.
The acquisition in Brazil will allow Profilform Division, as the third sector of Voestalpine Group, to enter the South American market, which in the long term offers an above average growth potential compared to overall global development.
Voestalpine AG also said that its investments were focused on building new plants in the US and Germany, expanding production in the Czech Republic, doubling capacity and establishing a modern processing facility in Belgium, as well as updating and extending Profilform Division's UK site.