Mechel bought Ductil Buzau for €90 mln

Former owners FRO SpA gave up its entire 71.85 percent share package, while Broadhurst Investment, which had a 10.88 percent equity interest, and other shareholders, sold portions of their participation, according to sources close to the transaction.

Ductil’s market value reached €94 mln. Ductil posted €21 mln in revenue in the first half of 2007, and a profit worth €3.7 mln. The value of product stocks amounted to €5.7 mln by June 30, 2007, and receivables totaled €9.5 mln. Ductil’s debts increased to €4.5 mln by the end of the first six months.

In Romania, the Russian company, controlled by billionaire Igor Ziuzin, owns the former Combinat de Oteluri Speciale Targoviste, which it took over in 2002, and Industria Sarmei Campia Turzii, bought from the Authority for State Assets Recovery (AVAS).

Mechel’s competitors on the Romanian metallurgical market are Mittal Steel Galati, Mittal Steel Hunedoara, TMK Resita, Grantmetal Bucuresti, and Otelinox Targoviste.

Ductil was founded in 1963 as Intreprinderea de Sarma si Produse Buzau. As a result of the evolution of the market economy since 1991, “The Wire and Wire products factory”, became SC Ductil SA Buzau.

Mechel Targoviste registered €114.4 mln in net sales in H1 2007, and €4 mln in net profit. The company posted net sales worth €183.7 mln in 2006, with a profit of €2.5 mln.

Mechel Campia Turzii obtained gross profit exceeding €1.1 mln in the first quarter of 2007, registering €35.9 mln in turnover. The company ended the year 2006 with a €8.2 mln loss, three times lower than in 2005.