15 August 2006
Novolipetsk Steel (NLMK) completes the acquisition of a 100% interest in VIZ Stal
Novolipetsk Steel, NLMK (LSE: NLMK), the leading Russian steel producer, has completed the acquisition of 100% in VIZ Stal, the second-largest Russian electrical steel manufacturer, for USD 550 million. As previously stated in the announcement dated June 9th, 2006, the deal was financed in full from NLMK’s existing cash funds. VIZ Stal will be consolidated by NLMK from the mid-August, 2006.
Based in Ekaterinburg, VIZ Stal is a rolling facility which specializes exclusively in electrical steels. VIZ Stal produces cold-rolled electrical steel sheet, and has a 56% share of the Russian grain-oriented steel market and about 11% of the world market. VIZ Stal’s production capacity is approximately 200,000 tonnes of electrical steel per annum.