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Severstal metiz sells its welding business in Russia to Lincoln Electric

Steel News - Published on Thu, 30 Dec 2010

OAO Severstal announced that its metalware segment Severstal-metiz has signed a definite agreement with Lincoln Electric Holdings, Inc. to sell Severstal-metiz Welding Consumables, a leading manufacturer of welding consumables in Russia. The transaction will include acquiring manufacturing operations and exclusive distribution rights of the Severstal brand of welding consumables. Financial terms were not disclosed.

Mr John M Stropki Chairman & CEO of OAO Severstal said “This acquisition will add to our manufacturing capacity in this fast growing market and complement Mezhgosmetiz-Mtsensk OAO our recent Russian acquisition. Severstal extensive stick electrode offering, along with solid wire and flux cored wire products and combined with solid wire products from MGM will make Lincoln Electric a leading consumables manufacturer in the CIS countries. The two acquisitions complement our imported machine products offering and will expand our market presence in the region.

Manufacturing production facilities are based in Orel, Russia with 283 employees. Severstal-metiz Welding Consumables’ 2010 estimated sales were approximately USD 40 million USD.

Mr Oleg Veter CEO of of Severstal-metiz Group of Companies said “The sale of Severstal-Metiz Welding Consumables will allow us to concentrate fully on our core business and continue to provide our clients with competitive product of highest quality.”

The Severstal-metiz transaction is under review by Russian regulatory authorities and is expected to close during the 2011 first quarter.

Posted By : admin on Thu, 30 Dec 2010
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