SAULT STE. MARIE, ON, June 20 /CNW/ - Essar Global has completed the
acquisition of Algoma Steel Inc. through its wholly owned subsidiary, Essar
Steel Holdings Limited.
Essar has acquired the company at a valuation of Canadian $1.85 billion.
Following this, Algoma Steel becomes a part of Essar Global. Mr. Denis
Turcotte will continue as Chief Executive Officer of Algoma Steel Inc.
Mr Shashi Ruia, Chairman, Essar Global said, "We are delighted to welcome
Algoma to the Essar family. Algoma is the keystone of our expansion into the
North American markets. We look forward to working with Algoma's impressive
team to take forward our vision of world class, low cost steel assets, with a
global footprint. In addition, there are plenty of synergies available between
our two operations."
"As part of the Essar group, we will be able to exploit new growth
opportunities and implement the best technological and engineering practices
from across both organizations. This is a win-win situation for all Algoma
stakeholders. Our customers, employees, and community can look forward to
investment that will reposition the Company as a North American leader in
steel", added Denis Turcotte, CEO of Algoma.
Algoma brings a whole new dimension to Essar Steel's marketing operations
in North America and Algoma will now have access to Essar's range of value
added products in the automobile, white goods, construction and engineering
industries. The enlarged business will concentrate on further reducing costs
of production, widening the product range and developing new applications.
Essar Global is an international conglomerate operating in six business
areas - steel, energy, power, communications, shipping & logistics and
construction. It has offices world-wide and employs approximately 20,000
people, including over 3,500 persons in the United States. The group has built
a portfolio of assets with expected revenues of US$10 billion in the year to
March 2008. For further information, please visit: www.essar.com
Essar Steel Holdings Limited (ESHL) is a global producer of steel with a
footprint covering India, Canada, United States of America, Middle East and
Asia. It is a fully integrated flat carbon steel manufacturer - from iron ore
to ready to market products. ESHL has a current capacity of 8 million tonnes.
With its expansion plans in India and other parts of Asia and North America,
its capacity will go up to 20 to 25 million tonnes by 2012. Its products find
wide acceptance in highly discerning consumer sectors, such as automotive,
white goods, construction, engineering and ship building.
About Algoma Steel
Algoma Steel Inc. is an integrated steel producer based in Sault Ste.
Marie, Ontario with steel shipments of 2.4 million tons in 2006. Revenues,
which totaled Canadian $1.9 billion in 2006, are derived primarily from the
manufacture and sale of rolled steel products including hot and cold rolled
steel and plates.
For further information:
For further information: Essar Group, William Clutterbuck, Phone: +44
207 379 5151, Email: firstname.lastname@example.org; V Krishnan, Head, Corporate
Communications, Phone +91 98197 30208, E Mail: email@example.com; Manish
Kedia, Senior Vice President, Phone: +91 98197 30092, Email: firstname.lastname@example.org;
B Ganesh Pai, General Manager, Phone: +91 98197 30225, Email: email@example.com