ArcelorMittal exits Russian steelcord joint venture

ERJ staff report (DS)

Luxembourg / Cherepovets, Russia -- ArcelorMittal has agreed to sell its 50% stake in steelcord producer TrefilArbed Rus to Severstal-metiz.

The joint venture was established in 2005 when ArcelorMittal Wire Solutions joined Severstal-metiz to develop TA Rus on the Russian steelcord market, giving their JV access to specific technologies provided by ArcelorMittal Wire Solutions. This agreement will allow both companies to focus on their current wire strategies.

TA Rus is located at Severstal-metiz' Orel site. It will change its name to Orelcord. Its revenues totalled 842,5 million rubles (Euro 23.5 million) in 2006. In 2006, the company obtained the ISO 9001 quality management certification.

The Severstal-metiz company (the metalware division of Severstal) was founded in 2004. The company also incorporates the Ukrainian-based Dneprometiz and the British Carrington Wire Limited companies.

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Press release from Severstal-metiz