Mar 17 2006
Smorgon Steel Group has agreed to acquire the operating assets of Australian Colour Coaters (ACC) for an undisclosed consideration. Completion of the acquisition is expected to occur on 31 March 2006. Under Smorgon Steel’s ownership, this business will operate as Smorgon Steel Coil Coaters (SSCC).
In announcing the acquisition, Smorgon Steel Managing Director & CEO Ray Horsburgh said, “Acquisition of these assets is consistent with our strategy of expanding in high value specialty steel products, particularly where synergies exist with our current products and markets.”
ACC presently coats approximately 20,000 tonnes of imported steel coil, mostly for use in Fencing, Shed and Coolroom Panel applications. These segments of the coated steel market are serviced primarily either by ACC or by imported pre-painted flat steel.
Mark Vassella, Chief Executive of Smorgon Steel Distribution said, “The formation of SSCC is a natural extension of our Sheet Metal Supplies business and it provides us with an opportunity to package solutions for the building industry with our reinforcing mesh, tubular and LiteSteel™ beam products.
“ACC previously imported all their coil feedstock requirements. Smorgon Steel purchases substantial volumes of coil each year, and its major supplier is Australia’s BlueScope Steel. It is our intention to i
SSCC will be valuable addition to the Smorgon Steel Distribution division and fits the strategic direction of growth in specialty steel products.
http://www.smorgonsteel.com.au