Salzgitter AG, Germany's second biggest steelmaker, has signed a contract to acquire the Graz- and Gratkorn-based operations of Austrian steel distributor Kovac Stahl. With a workforce of around 130 employees, Kovac Stahl operates steel trading and steel service center activities at its various locations. With shipments of more than 40,000 mt, the company generated sales of approximately €47 million in 2011.
Salzgitter AG's Trading Division's has strengthened its market position in Austria through the acquisition of these Kovac Stahl sites and will be represented in future in this market through its own warehouse location. Moreover, the transaction has extended the divison's portfolio in the field of thermal separating technologies revolving around laser cutting. Kovac Stahl also operates distribution centres in Slovenia, Croatia and Hungary.
The parties have agreed to not disclose the purchase price. The acquisition is subject to approval by the anti-trust authorities.