The Russian steel producer Severstal has submitted notification to the European Commission (EC) of its intention to acquire steel processing and distribution company Holding Gonvarri Russia SL, which belongs to Spanish steel and motor vehicle parts producer Gonvarri Corporación Financiera S.L (Gonvarri), a division of Gestamp Corporation, Spain. Severstal's notification will be examined by the EC under a simplified scheme before September 4, 2009.
"On preliminary examination, the Commission finds that the notified transaction could fall within the scope of Regulation (EC) No. 139/2004 (on the control of concentrations between undertakings (EC Merger Regulation)). However, the final decision on this point is reserved," the EC says in its statement on the issue.
Meanwhile, in early June this year, Severstal and Gestamp Corporation's Gonvarri, registered a new joint venture (JV) for automobile stamping production in the Kaluga region of Russia, which will produce auto body parts for the factory of leading German automobile manufacturer Volkswagen located in the same industrial zone.
Within the framework of the JV, the construction of a new 170,000 mt capacity metal service center has been commenced in Russia's Kaluga region, aimed at meeting the needs of the automobile industry, as well as of the electrotechnical, electronic and construction industries. The total investments in the service center are estimated at €40 million, while its construction is scheduled to be completed in Q1 2010, at the same time as the commissioning of the Gestamp-Severstal JV automobile stamping plant in the Kaluga region.