Latest News

May 22, 2008 – 7:29 am

Nippon Steel plans to build new plant in Thailand

Nippon Steel Corp. has expressed its hopes of building a steel plant in Thailand. Nippon Steel is expanding its steel output in response to growth in global steel demand. But it may be forced to reduce domestic production depending on the course of international talks on a successor framework for the Kyoto Protocol on greenhouse gas cuts. Nippon Steel is yet to decide whether it should shift its focus to foreign operations by holding back from raising its domestic output said Shoji Muneoka, President, Nippon Steel.

Besides Nippon Steel, Japan’s JFE Steel Corp., ArcelorMittal and China’s Baosteel Group Corp. have offered to participate in the Thai steel plant project. The Southeast Asian country is expected choose only one firm. Nippon Steel recently decided to expand the group’s steel output in Brazil. It also aims to expand to Thailand.

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Latest News

May 20, 2008 – 3:00 am

Severstal to acquire WCI Steel in US

Severstal announced that it has reached a binding agreement to purchase WCI Steel. The acquisition is subject to customary closing conditions, including the receipt of all necessary government and regulatory approvals. Under the terms of the agreement, Severstal will acquire all outstanding equity of WCI for a total cash consideration of US$ 140 million, implying an enterprise value of US$ 327 million. WCI’s Board of Directors has recommended the transaction to its shareholders.

Speaking on the occasion, Mr Gregory Mason CEO of Severstal International and COO of OAO Severstal said “This acquisition is aligned with Severstal’s disciplined approach to growing our US business while creating shareholder value. It solidifies our position as the fourth largest steel producer in the US by raising Severstal’s total US capacity to just under 11 million tonnes per year. The addition of WCI to Severstal’s family will enhance our custom product capabilities and create opportunities to increase profitability in both the short and long-term.”

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Press Releases

May 20, 2008 – 12:32 am

BE Group AB: BE Group Grows in the Czech Republic, Buys Ferram Steel

BE Group (STO:BEGR) is acquiring Ferram Steel a.s. to continue the strategy of growth in Central and Eastern Europe. Ferram Steel a.s. will make a positive contribution to growth and profit and generate cost and capital synergies combined with BE Group’s current Czech operations. Ferram Steel a.s. reported sales of SEK 343M and operating profit of SEK 15M in 2007. The company is also showing a very strong first quarter in 2008. BE Group had sales of SEK 80M in the Czech Republic in 2007. With the acquisitions of Ferram Steel a.s. and Czechprofil, finalized earlier this year, BE Group has multiplied turnover in the Czech Republic tenfold to become one of the five largest distributors in the country, with sales of almost SEK 750M.

“BE Group is taking a significant step in the Czech Republic with the acquisition of Ferram Steel a.s. to achieve the critical mass needed for profitable operations in the long term,” says Håkan Jeppsson, president and CEO of BE Group.

Ferram Steel a.s. is a subsidiary of Ferram a.s. and concentrates on flat products. The company has sites in the eastern Czech Republic cities of Opava and Ostrava, where the head office is also located. Ferram Steel a.s. recently invested in a sophisticated logistics facility in Ostrava, which is creating substantial opportunities for further business growth in the Czech Republic, Slovakia and southern Poland. The proximity to nearby steel producers will reduce both costs and the environmental impact of shipments.

“Ferram Steel a.s. is a strategic acquisition that strengthens our position not only in the Czech Republic but throughout Central Europe. The company enjoys a favourable geographical location, expansive logistics, and a strong supplier network in Ukraine, all of which enhance the value proposition for BE Group as a whole,” says Håkan Jeppsson.

The acquisition is expected to make an immediate positive contribution to growth and profit and yield synergies including lower costs, improved inventory turnover and higher sales. Subject to approval by the Czech competition authorities, the transaction is expected to be finalized during the summer.

The information in this press release is such that BE Group AB (publ) is required to publish pursuant to the Swedish Securities Markets Act and/or the Swedish Financial Instruments Trading Act. The information was submitted for publication on May 14 at 07:30 a.m. CET.
BE Group AB (publ), listed on the OMX Nordic Exchange Stockholm since November 2006, is one of the leading trading and service companies within steel and other metals in Europe. The company has about 10,000 customers, primarily within the construction and engineering industries. BE Group provides service in the steel and aluminium sectors. The company’s sales in 2007 were SEK 7.7 billion. BE Group has approximately 1,000 employees in ten countries in northern Europe, where Sweden and Finland are its largest markets. The head office is in Malmö Sweden. Visit www.begroup.com for more information.

This information was brought to you by Cision http://newsroom.cision.com

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