Arcelor announced today that it has entered into an exclusivity agreement with Schmolz+Bickenbach for the sale of 100% of its stainless long products subsidiary Ugitech.

The intended sale is subject to the completion of a due diligence, approval by the boards of directors of both companies and appropriate regulatory approvals. The sales project that would bring together Ugitech with Edelstahl Witten-Krefeld GmbH (EWK) and Edelstahlwerke Südwestfalen GmbH (EWS), recently acquired by Schmolz+Bickenbach through its majority controlled company Swiss Steel AG, would allow the creation of the European and world leader in stainless long products, coupled with a powerful distribution network. The potential merger would contribute to the necessary concentration of this industry sector.

The improvement of Ugitech’s performance (the EBITDA of the company more than doubled between 2003 and 2005) results from the implementation of a plan announced in 2003 and is an example of a successful turnaround. Arcelor is convinced that this intended transaction would create an optimal environment for the growth and development of Ugitech.

About Ugitech

Ugitech is a company within Arcelor’s Stainless Steel activity. Specialized in stainless steel and nickel alloy long products, (semis, bars, wire rod and drawn wires) the business generated in 2005 sales in the range of 630 million euros and a volume of approximately 200,000 tons. Its main markets are the process, automotive, construction and food processing industries in which Ugitech has a leadership position. Ugitech is headquartered in Ugine (Savoie, France). The company employs more than 2000 staff, mainly in Europe (France, Germany, Italy …) and in the USA.

Website: http://www.ugitech.com

About Schmolz+Bickenbach

Schmolz+Bickenbach Group is a fast growing European manufacturer, processor and distributor of special steel and stainless bars and rods with the highest level of service to customers. As of December 31, 2005, it represents more than 8,400 employees at more than 50 locations in Western and Eastern Europe, North America, South Africa, Australia and Asia. Schmolz+Bickenbach operates a large sale network present in more than 25 countries with sales of more than 3 billion euros. The company is headquartered in Düsseldorf, Germany.

Website: http://www.schmolz-bickenbach.com

Reactie XEA.nl
Het gevecht wordt steeds breder gevoerd. En Mittal Steel weet straks ook niet meer wie er met de mogelijke overname van Arcelor wordt gekocht.