RIGA - Severstallat, a metal trade and processing company controlled by Russia's Severstal, announced that it has purchased a Polish metal processor as part of its expansion plans in the region.
"We have acquired Polish Tehnologia Bucek, which has been inoperative more often than working within the last 8-10 years, although it was established approximately 120 years ago," Aleksejs Gogunovs, head of the company's board, told the Dienas Bizness daily, adding that the deal cost 15 million euros.
He said PTB had experts, knowledge and experience to revive the Katowice-based company and transform it into a major competitor to leading metal trade companies in Poland.
"Poland is a large, dynamically growing market and establishing a subsidiary was a logical move," Gogunovs said.
He said Severstallat products have been sold in Poland for several years now, and sales are increasing every year.
According to the daily, Severstallat plans to invest 10 million euros in the company, which will help it strengthen ties to potential customers in Poland and the neighboring Czech Republic, Slovakia, as well as Hungary, Germany and Austria.
The daily reports that the company, which employs 350, has changed its name to Severstallat Silezia.
Severstallat was established in 1992 by Russia's Severstal steelworks and Latvia's Felix holding. The key owner is Austria-based Severstal Trade GMBH with a 50.5 percent stake, while a 49.5 percent stake belongs to Felix.
Severstal is one of Russia's two largest steel mills and has a growing presence in North American and European markets. On March 21 it announced that it was buying the Sparrows Point steel mill in Baltimore for $810 million.