Severstal announces sale of Balakovo mill

Wednesday, 08 May 2019 15:46:09 (GMT+3)   |   Istanbul
       

Russian steelmaker Severstal has announced that it has entered into a definitive agreement with Russia-based Abinsk Electric Steel Works LTD for the sale of its Balakovo mill. The transaction will involve a payment of $215 million and is expected to be completed in the first half of 2019 following the receipt of approvals and other standard conditions.

“Following the sale of Balakovo mill, we plan to focus on developing steel production at our main asset, Cherepovets Steel Mill. We are confident that this will enable us to streamline our internal processes to execute our updated strategic priorities successfully. We are committed to providing our customers with integrated solutions and increasing our production of high value-added products. At the same time, Severstal will continue to supply long products via our long product facilities at CherMK. Balakovo mill was the first producer of long products in the Volga Federal District and has become known as a trusted supplier of high-quality products,” said Alexander Shevelev, CEO of Severstal.

Vitaly Babenko, general director of Abinsk electrometallurgical plant, said that the acquisition of Balakovo mill is fully consistent with the strategy of the company and will allow Abinsk to strengthen its position in the market.

Balakovo mill has an annual capacity of 1 million mt of profiled iron for building materials (reinforcement, angle, channel). It produces a range of 40 different products. The mill has produced over three and a half million mt of products since it was first launched.

 


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