Russia’s Novaem acquires Alapaevsk Iron and Steel Works

Russia's Novaem group of companies, specialized in manufacturing of equipment and supply of tubular goods and rolled metal products to the energy sector, has announced that it has acquired 100 percent of shares of Russian ferromanganese producer Alapaevsk Iron and Steel Works, located in the Sverdlovsk region, from the Ukrainian business group Privat Group. The financial details of the deal have not been disclosed.
 
According to the company's statement, Novaem plans to resume the plant's operations, stopped in 2005, to reach its full capacity utilization level, and later to switch to the development of new production.  " The acquisition of  Alapaevsk Iron and Steel Works is part of our long-term strategy. This business fits well into our production chain. We are well aware of those prospects that are opening up in front of the plant," Novaem said.
 
According to local media reports, at the plant Novaem intends to organize the production of pig iron, which will be offered to pipemaking companies supplying to Novaem's subsidiary Trubmash, which is specialized in deliveries of tubular goods, fittings and power equipment for energy, gas and petrochemical companies. This scheme is expected to optimize Novaem's costs. Reportedly, the company is currently negotiating with such pipe producing companies as ChTPZ, OMK, TMK and others.
 
As SteelOrbis previously reported, Alapaevsk Iron and Steel Works, with an annual production capacity of 40,000 mt of ferroalloys, stopped its operations in 2005, in which year it produced 13,000 mt of ferromanganese. In 2009, the Russian steelmaker NLMK showed interest in the acquisition of the plant; however, the transaction fell through.