ArcelorMittal buys out partner Primex in Turkish JV Uginox
14 Jul 2008
Mumbai: Global steel player ArcelorMittal has agreed to buy out Primex and has taken full control of its stainless service joint venture Uginox Sanayi ve Ticaret Limited in Turkey.
''ArcelorMittal and Primex (Germany) have reached an agreement whereby ArcelorMittal Stainless International is acquiring 35 per cent stake in Uginox Sanayive Ticaret Limited Sirketi, which was owned by Primex,'' ArcelorMittal said in a statement.
The company plans to gradually double the size of its stainless service operations in the coming years, which will be renamed ArcelorMittal Istanbul Stainless Service Turkey.
Uginox was set up in 1997 as a joint venture between Arcelor and Primex. While Arcelor had 65 per cent stake in the JV, Primex had the rest.
Uginox operates a coil processing and service centre in Gebze, close to Istanbul and specialises in servicing the fast growing automotive and white goods markets.
''This transaction consolidates our position on a fast growing market and allows us to follow our key customers from the appliance and automotive sectors in their own development,'' said ArcelorMittal Stainless CEO Jean-Yves Gilet.
In 2007, it processed about 38,000 tonnes of stainless steel and had revenues of about $102 million, the statement said.
