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. Last Updated: 07/27/2016

NLMK Seals U.S. Steel Deal

The U.S. venture of Russian steelmaker NLMK and Swiss-based Duferco Group have reached an agreement with U.S. independent steel producer Winner Steel to buy its assets, NLMK said Thursday.

"The total acquisition price, including the assumed liabilities, is estimated to be approximately $211.6 million, subject to a working capital adjustment based on the closing balance sheet," an NLMK statement said.

NLMK and Duferco are now discussing with U.S. steel services firm Esmark the possibility of granting it a six-month option to acquire up to 50 percent of Winner Steel at NLMK-Duferco cost plus interest, it said.

Pennsylvania-based Winner Steel is one of the largest U.S. independent galvanized steel producers, with combined annual capacity of around 1.2 million tons. The deal is expected to be completed in June 2007, the statement said.

Winner Steel's operations in Pennsylvania are close to the Farrell facility, which is already part of the NLMK-Duferco venture and is one of the top suppliers of cold-rolled steel to the galvanizing industry, including Winner Steel.

The company's production of galvanized steel is used mainly in the construction, appliance and automotive industries.

NLMK produces more than 9 million tons of crude steel annually in Russia. Duferco is an international steel production, processing and trading firm.