The Russian mining and steelmaking company Mechel has announced the acquisition of a 100 percent stake in Romanian longs producer Ductil Steel.
Following the clearance received from the Romanian Antimonopoly Committee on March 28, Mechel purchased Ductil Steel for a consideration of $221 million.
Ductil Steel's production facilities include Ductil Steel Buzau, which specializes in production of carbon and low-alloy steel rolled and wire products, and Otelu Rosu plant, which produces steel and billets.
In 2007, Ductil Steel produced approximately 340,000 mt of crude steel, 320,000 mt of billets, 180,000 mt of rebars, 105,000 mt of different kinds of wire, 68,000 mt of wire rod and 48,000 mt of mesh.
The acquisition of Ductil is in line with Mechel's strategy for the development of its steel segment and is aimed at the maintenance of Mechel's position in the Romanian rolled and wire products market.