As part of its merger requirement, Arcelor Mittal sold Stahlwerk Thringen GmbH (SWT) to Grupo Alfonso Gallardo for 591 million euros (US$786). SWT, located at Unterwellenborn, Thringen, Germany, produces steel sections up to 550mm in width used in building and construction. It has 700 employees.
Industrial facilities located in Unterwellenborn are based on steel scrap recycling and combine an electric arc furnace, a ladle furnace, a four-strand continuous caster and a section rolling mill. SWT's annual production capacity is about 1 million tons.
Mittal will also see three European medium/heavy section mills: Arcelor's Stahlwerk Thringen and Travi e Profilati di Pallanzeno (Italy), and Mittal Steel's section and bar mill Huta Bankowa (Poland).
"Stahlwerk Thringen is a high quality facility and I am delighted that this transaction fully values its potential. I am sure that under the leadership of Grupo Alfonso Gallardo it will continue to thrive," Aditya Mittal, CFO,Arcelor Mittal said.
The closing of the transaction is expected in early 2007.