ArcelorMittal buys 70 per cent in Brazilian steel processor Manchester Tubos
25 Jul 2008
Mumbai: Close on the heels of its acquisition of a 50 per cent stake in Gonvarri Brasil, ArcelorMittal has announced the acquisition of a 70 per cent stake in Brazilian steel processor Manchester Tubos e Perfilados SA.
The LN Mittal;-led steel giant had earlier acquired a 50 per cent stake in Gonvarri Brasil, a steel service facilities provider for industrial and automotive sectors.
The acquisition of Manchester and Gonvari, a steel processor and distributor located in Contagem, Minas Gerais, would reinforce ArcelorMittal's downstream operations in Brazil and help it target the country's construction market as well.
ArcelorMittal said it is planning to widen its product offering in the distribution segment in Brazil, adding the new acquisition would help the company offer an extended range of flat products, including coils and blanks, profiles, tubes and pipes.
''Penetrating this fast growing market with a diversified offer, from tubes to structural profiles, is considered as a great opportunity for the Group," said Michel Wurth, member of the ArcelorMittal management board, in charge of steel solutions and services.
Manchester reported net sales of 270 million reals in fiscal 2007.
Manchester Tubos, with an annual capacity of 2.4 lakh tonnes for finished steel products, and 60,000 tonnes for processed products, reported net sales of over $170 million (270 million reals) in 2007.