Wednesday, January 10, 2007

Greek Sidenor buys Macedonian rolling mill

Greek steel products manufacturer Sidenor has bought Bulgarian-owned Macedonian rolling mill Velder Export Import for an undisclosed sum, exercising its option under a strategic partnership deal with Bulgarian-based Velder BG, a Velder BG official said.

Velder BG, owned by Swiss firm Success Invest, leased the production facilities of Macedonia's sole producer of reinforcing iron, Velder Export Import, to Sidenor under a four-year strategic partnership agreement in March 2006.

The installations located within 15 km from the border station of Dojran, include a rolling mill of long products with production capacity of 200.000 tons per year; a production unit for structural mesh with production capacity of 20.000 tons per year and a production unit for lattice girders with production capacity of 10.000 tons per year, as well as warehousing facilities and office space.

Sidenor had an option to acquire ownership of the FYROM plant under the deal.

The companies have agreed to transfer ownership of Velder Export Import to a new company called Dojran Steel, in which Sidenor owns 75% and Velder BG has the remainder.

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