Apr 29 2006
The Arcelor Group has signed an agreement for the sale of 100% of shares of its stainless long products subsidiary Ugitech S.A. to the Schmolz Bickenbach Group. Finalisation of this transaction is solely subject to the approval of the relevant competition authorities.
The creation of this new unit allows combining all the advantages of two performing and complementary companies in terms of geographical location, range of products and distribution networks.
In choosing Schmolz Bickenbach as strategic partner for Ugitech, Arcelor creates an optimal environment for the future development of its subsidiary. In fact, the plan announced in 2003 for the improvement of its performance allows Ugitech today to take full advantage of the growth opportunities and synergies within the Schmolz Bickenbach Group, which holds from now on a leadership position in Europe and worldwide in stainless long products.
This combination contributes to the necessary concentration of this industry sector. At the same time, it marks the successful refocusing, carried out between 2002 and 2006, of Arcelor's stainless steel business unit on flat stainless products in Europe and Brazil.