Luxembourg - Arcelor Mittal has bught a majority stake in the Chinese steelcord maker, Rongcheng Chengshan Steel Cord Co. based in Shandong province. The deal is subject to certain legal and financial conditions.
A spokesman for Arcelor Mittal said the sale price is around $27 million (â‚¬20 million) and that the Chinese company reported sales of RMB 375 million (â‚¬36.7 million) in 2006. The spokesman said it was a small deal for Arcelor Mittal.
Rongcheng Chengshan makes steel cord and bead wire for the tyre industry. Indian press reported production volume of around 60 000 tonnes per year and quoted Chinese media saying ArcelorMittal would own 90 percent of the company after the deal goes through.
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DNA Money (India) story