Luxembourg - ArcelorMittal Wire Drawing Asia SÃ rl has bought a 90 percent stake in Rongcheng Chengshan Steelcord for $26.6 million (€18.8 million).Â Rongcheng Chengshan is aÂ privately owned, Chinese steelcord wire drawing company based in Shandong province.
Simultaneously, Cooper Tire & Rubber Co said it had sold its wholly-owned subsidiary's 25 percent interest in Rongcheng Chengshan Steel Cord Company to ArcelorMittal for $7.4 million.
Cooper Tire's acquisition of 51 percent of Cooper Chengshan (Shandong) Passenger Tire Company, Ltd., and Cooper Chengshan (Shandong) Tire Company, Ltd.,was completed in early 2006 and included a 25 percent ownership position in the steel cord factory which is located adjacent to the tyre manufacturing facility in Rongcheng City, Shandong, China.
Rongcheng Chengshan Steelcord specialises in steelcord wire and bead wire. The company forecasts a turnover of RMB 536m (€50 million) for 2007. ArcelorMittal said China is the largest steelcord wire market in the world.
Lakshmi Mittal, President and Chief Executive of ArcelorMittal said, "'This acquisition is an important step for us in expanding in a major market. We have already shown through our joint ventures in China the value and skills we can bring the Chinese steel industry and we look forward to bringing our expertise to Rongcheng Chengshan Steelcord. As well as showing our commitment to the broader Chinese steel market, this acquisition also underlines our commitment to the wire business specifically and recognises China's leading position in this sector.'
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Press release from ArcelorMittal