Reliance Steel & Aluminum joins China market
Metals processor Reliance Steel & Aluminum Co. has reached an agreement with
Singapores New Wave Technologies Ltd. which will give the company access to the burgeoning Chinese market.
Reliance Steel, New Wave, and its associate firm,
Manufacturing Network Pte. Ltd (MNPL) will form a joint venture in which Reliance Steel will own 70 percent stake and MNPL will own the remaining thirty.
Under terms of the agreement, MNPL will sell its 100 percent interest in Chinese metals servicer Everest Metals (Suzhou) Co. to Reliance Pan Pacific. Everest Metals earned approximately $2.5 million in sales last year.
The deal is expected to close in 2006 depending on regulatory and shareholder approval.