Russia's Volgograd-based Red October Steel Works has announced its success in the tender for the purchase of part of the assets of Barricady FSUE IA, one of Russia's largest machine building enterprises, also situated in Volgograd.
Following the tender, Red October Steel Works has aquired Barricady's movable and immovable property which includes buildings, installations and equipment for smelting, forging and the mechanical processing of steel.
The total cost of the acquisition is Ruble 978.5 million (approx. $41.266 million).
The new production capacities will allow Red October to enlarge its assortment and output of
large tonnage forgings, thick walled pipes, steel and non ferrous foundry for machine building, power engineering and atomic energy industry.
For its forging production, Red October intends to activate Barricady's radial-forging machine RKM-85, which allows the forging of steel ingots with weights of up to 500 mt. The steelmaker plans to start production with 140 mt steel ingots.
The Barricady property has to be transferred to Red October by August 1, 2008.