OREANDA-NEWS. August 06, 2008. As result of this transaction the Wire Ropes division of Redaelli Tecna (“Redaelli”) became a part of Severstal-metiz, reported the press-centre of Severstal-metiz.

This division includes Cordati (wire ropes production site located in Gardone), Tensoteci (a technical engineering business) and Teci (a distribution chain in Italy). The other two divisions: Tecnasud (a PC strands production site) and Sodetal (a steel cord producer) were split off and acquired by other buyers beforehand and will operate under their own brands, not associated with Redaelli.

The purchase of the Redaelli wire rope business will allow Severstal-metiz to extend its product portfolio through the inclusion of speciality wire ropes of complex construction produced by the Italian company and the development of wire rope service and engineering using Redaelli’s expertise. It will also offer Severstal-metiz new opportunities for effective Worldwide distribution.

At present Redaelli will continue its business activity in line with current plans and an integration team involving personnel from both Severstal-metiz and Redaelli will develop future plans in order to capture the synergies between the two companies.

Olga Naumova, CEO of Severstal-metiz, said: “Redaelli perfectly complements the Severstal-metiz rope division – a key element of our strategy to develop niche markets. Redaelli is renowned for the quality of its high-tech products and projects and we intend to take advantage of this brand and supplement it with our own knowledge, experience and qualifications”.

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*Аn affiliate of Kohlberg & Co., a leading U.S. private equity firm (76.7 % of shares) was the key shareholder of the company. The rest of the shares were held by a number of minor shareholders.

"Severstal-metiz" group of companies (part of “Severstal”) manufactures steel wire and wire products with production facilities in Russia, Ukraine and Great Britain. In Russia "Severstal-metiz" holds a market share of 25 %, in the Ukranian market 18 % and in the UK 23 %. In 2007 the "Severstal-metiz" group of companies sold more than 1 million tons of steel products, EBITDA reached 87.3 million dollars, that is 1.8 times greater than 2006. Olga Naumova is the CEO of the group.

Redaelli Tecna S.P.A. (wire ropes division) is a World market leader in speciality wire ropes. Market sectors include offshore, mining, cableways, civil-engineering structures, hoisting and electrical power engineering. In 2007 the company produced 15,000 tonnes of ropes and its EBITDA was 10.4 million Euro. Maurizio Prete is the CEO of the company.