CORPORATE NEWS:
Carrington has new Russian owner
Severstal-metiz, a leading Russian and CIS wire manufacturer, has bought Carrington Wire from Acertec Holdings.
Carrington Wire is a manufacturer of wire and wire products, supplying over 50 countries around the globe from an annual production capacity of more than 200,000 tonnes.
Over the past decade Carrington Wire’s production has more than doubled. Its world-class production facilities at Elland and Cardiff each have their own specific core competencies: Elland produces bedding and seating, baling wire, mechanical spring wire and other products for the general mild steel sectors, while Cardiff focuses on the cold heading and construction wire industry serving the fastener, automotive, construction products and civil engineering sectors.
Nail products are manufactured and marketed by a separate business unit – Rylands Wire Products, based near Liverpool – under the Carrington umbrella.
The new owners do not foresee any dramatic, immediate changes and expect it to be business as usual. Olga Naumova, the General Director of Severstal-metiz comments: “We shall make a detailed analysis of each of the business processes in the company. Then we shall develop future plans based on capturing of synergies. By my estimation, it’ll take two to three months to complete. Based on previous experience of Severstal Group’s integration of foreign companies, I believe that Carrington will pass the initial integration period without serious consequences.”
The most noticeable change for staff at Carrington Wire will be a new Chief Executive. David Crimp has resigned and will stay with Acertec, as he is an Acertec employee. Sergey Solousov, Severstal-metiz’s Business Development Director has been appointed as Chief Executive in Mr Crimp’s place.
For Severstal-metiz this purchase is the next step in its global development strategy according to which the company plans to become the leading company in Europe and the CIS in manufacture and sale of wire and wire products. “The basic purpose of the acquisition is the development of both companies,” says a spokesman. “This will happen through technology exchange between the UK enterprises and the plants in Russia and the Ukraine, the diversification of the product portfolio and, as a consequence, an increase in the company’s value and service for European customers.”
John Sword, Chief Executive Officer of Acertec, commented: “Severstal is a natural home for Carrington, which will benefit from being attached to a major international steel producer. The management and employees of Carrington have worked hard to achieve its leading market position in the UK and an emerging position in Europe. We wish Carrington every success under its new ownership.”
“The support of one of the biggest steel
producers in the world will strengthen Carrington’s position and give added value to European customers. Since Carrington Wire is now part of a major force in world steel-making, it has the strength, stability and access to raw materials, research and development, new product opportunities as well as expertise in steel,” remarks Olga Naumova.
Severstal-metiz is the largest Russian and CIS manufacturer of wire and wire products consisting of four production sites, three located in Russia at Cherepovets, Orel and Volgograd and one in Ukraine at Dnepropetrovsk. The company has cornered more than 31% of the Russian and CIS market and is the largest exporter of wire from Russia to Europe and the CIS (approximately 50% of total exports). Severstal-metiz’s revenue for 2005 was more than US$710m.
Severstal-metiz is a member of Severstal Group, a major Russian industrial group, and it was formed in August 2003 after the acquisition of Orel and Volgograd wiredrawing mills by Cherepovets wiredrawing mill. In February this year Severstal-metiz acquired control over Joint-Stock Company Dneprometiz, buying out the largest Ukrainian wire manufacturer. Previous steps in the development of Severstal-metiz’s export-oriented strategy include: TrefilArbedRus (a joint venture with TrefilArbed, part of group Arcelor, Luxembourg) for the production of metal cord; ChSPZ-MKR (a joint venture with MKR of the Czech Republic) for spring blocks production; Polycher (a joint venture with Polymetal of Italy) for the production of weaved wire mesh; and Steellace (a ‘daughter’ company of Severstal-metiz) for the production of the wire consumer goods.
Severstal Group is a major Russian industrial group with substantial assets in the steel, mining, automotive, machinery, transportation and other businesses. The group employs 150,000 people, operates with more than 30 enterprises in 15 regions across Russia, in the United States and the EU. The group’s 2004 turnover was US$7.8bn.
The core activity of the Severstal Group is steel. Its steel-making division assets are as follows: Cherepovets steel mill (Russia), Severstal North America Inc (Dearborn, Michigan, USA) and Lucchini Group (Italy). The main shareholder and CEO of the Severstal Group is Alexey Mordashov.
Company: |
JSC “Severstal-Metiz” |
Country: |
Russia |
Fax: |
+7 8202 539567 |
Email: |
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Website: |
www.chspz.ru |