Evraz Plc EVRAZ NA sells structural tubing business (7442G)

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RNS Number : 7442G

Evraz Plc

06 March 2015

EVRAZ NORTH AMERICA SELLS STRUCTURAL TUBING BUSINESS

6 March 2015 - EVRAZ plc (LSE: EVR) announces that its North American subsidiary EVRAZ North America ("ENA") has signed an agreement with Maruichi Oregon Steel Tube, LLC to sell ENA's structural tubing business (formerly known as Columbia Structural Steel) in Portland, Ore., for approximately US$51 million in cash, including approximately US$8.5 million of proceeds from the sale of inventories.

Proceeds from the sale will be re-invested in ENA as well as used to pay down the ABL balances.

The structural tubing facility produces 5,000 metric tonnes/month of hollow steel sections (HSS) for construction, industrial and agricultural applications. Its disposal is in line with EVRAZ plc strategy of divesting of non-core businesses.

The mill has 50 employees, all of whom will be offered positions with Maruichi.

"The structural tubing business does not align with our strategic priorities," said Conrad Winkler, President and CEO of EVRAZ North America. "We are pleased to sell it to Maruichi with an agreement to supply a significant part of their steel coil needs, and we appreciate their interest in retaining the seasoned workforce."

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EVRAZ is a vertically integrated steel, mining and vanadium business with operations in the Russian Federation, Ukraine, Kazakhstan, USA, Canada, Czech Republic, Italy and South Africa. EVRAZ is among the top steel producers in the world based on crude steel production of 15.5 million tonnes in 2014. A significant portion of the company's internal consumption of iron ore and coking coal is covered by its mining operations. The company's consolidated revenues for the year ended 31 December 2013 were US$14,411 million, and consolidated EBITDA amounted to US$1,821 million. The company's consolidated revenues for the six months ended 30 June 2014 were US$ 6,805 million, and consolidated EBITDA amounted to US$ 1,080 million.

This information is provided by RNS

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