Jul 23 2003
Through its subsidiary Commercial Metals (International) AG, Commercial Metals Company have entered into a definitive agreement to buy a controlling share of Polish steel maker Huta Zawiercie. The deal is subject to regulatory approval, but is anticipated to be completed within 3 months.
Commercial Metals will pay approximately $51 million to acquire the 71.1% share held by Impexmetal S.A of Poland. The majority of the balance is held by the Polish State Treasury.
Huta Zawiercie is Poland’s third largest steel producer and has consistently posted profits for the last 6 years. The facilities are modern with an annual capacity of about a million tons. Assets include two electric arc furnaces, ladle furnaces and casters. Main products include reinforcing bar and wire rod.
Commercial Metals expects the venture to be self funding.
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