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Mechel [RTS: MTLR], a leading Russian metals and mining company, said on Tuesday it had closed a deal to buy a 100% stake in Romania's Ductil Steel for $221 million.
The purchase is part of the company's strategy to develop its metals segment and keep its position on the Romanian rolled and wire product market, Mechel said in a statement.
"The integration of Ductil Steel's production and marketing facilities will allow Mechel to further develop its steel business, particularly in Romania and the rest of Eastern | Ads |  |
Europe, and will contribute to the economy of Romania, where two other Mechel subsidiaries currently operate. In addition, the purchase will further optimize our existing production chain while reducing costs," Vladimir Polin, the CEO of Mechel Management Company, said.
Mechel's market capitalization is around $18.1 billion. Last year the company increased its coal output by 25% to 21.2 million metric tons, and pushed rolled steel production by 9% to 5.1 million tons.
MOSCOW, April 8 (RIA Novosti)
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