Severstallat announced that it has acquired the assets of the Polish company, Technologie Buczek S.A., for EUR15 million at auction

A new company, Severstallat Silesia Sp. z o.o., has now been established and incorporated under the Polish law as a wholly owned subsidiary of JSC Severstallat.

Technologie Buczek S.A. owned 4 pipe mills with a capacity of  70,000 tn of pipes a year. The business also owned 2 slitting lines, a 50.72% stake in LLC Buczek Automotive - a producer of stock for car exhaust silencers - and a 100% stake in LLC Przedsiębiorstwo Usług Transportowych SAMKOL, a transportation company. The company employs 260 people.

JSC Severstallat plans to use the assets to set up a production and storage facility for the processing and distribution of metal products along the similar lines similar to its existing business.

According to Anatoly Kruchinin, Chairman of the Board of JSC Severstallat, the acquisition is a logical and complementary step. "Severstallat has run a metals trading business for 15 years. Our experience means we will be able to exploit the opportunities of the emerging Polish market very efficiently manner, expanding both the depot supply and the production/service components of our local business. In particular, we believe there are considerable opportunities in the structural pipes segment."