ArcelorMittal on Oct. 15 announced the acquisition of a 90% stake in Rongcheng Chengshan Steelcord, the Chinese privately owned steelcord wire drawing company based in Shandong province, for $26.6 million.
"This acquisition is an important step for us in expanding in a major market. We have already shown through our joint ventures in China the value and skills we can bring the Chinese steel industry and we look forward to bringing our expertise to Rongcheng Chengshan Steelcord," said Lakshmi Mittal, CEO.
Rongcheng Chengshan Steelcord specializes in steelcord wire and bead wire (used for tire reinforcement). The company expects sales of $71 million this year.
China is the largest steelcord wire market globally and is also the leading tire manufacturing base.
