Invest Nikarom, controlled by two Russian nationals, acquired Mechel Group’s five assets in Romania, namely Ductil Steel Mechel, Campia Turzii S.A., Mechel Targoviste S.A., Mechel East Europe Metallurgical Division SRL and Laminorul S.A.
The five companies employ around 7,000 staff.
“This transaction is yet another step in implementing Mechel’s revised strategy aimed at developing our key production lines and disposal of non-core businesses. We have earlier announced our intention to exit the European steel production, which is chronically loss-making both currently and in the foreseeable future,” said Evgeny Mikhel, Chief Executive Officer of Mechel.
He said the five Romanian units are expected to post a combined loss of some EUR59.6 million in 2013.
Invest Nikarom is equally-owned by Russians Chumakova Svetlana and Chumakov Victor. The company supplies machinery and equipment to the industrial sector.