NLMK and Duferco ink agreement on JV

Following last week's European Commission (EC) clearance for the creation of a joint venture (JV) between Russian mill Novolipetsk Steel (NLMK) and Guernsey-based Duferco, the concerned companies announced this week the signing of a definitive agreement on the matter. According to the signed document, NLMK and Duferco will each own a 50 percent stake in the newly founded Luxembourg-based JV, Steel Invest & Finance SA. The new joint venture company will hold major stocks in 22 Duferco-owned companies in Europe and USA. As for the NLMK stake in the JV, the company will purchase its 50 percent stake at a cost of approximately $805 million. In addition, NLMK and Duferco have agreed to invest approximately Euro 375 million in a technical update and expansion program for the JV companies.