6th Mar 2015 07:49
LONDON (Alliance News) - FTSE 250-listed miner Evraz PLC Friday said it has signed an agreement to sell its structural tubing business for a total of USD51 million in cash to Maruichi Oregon Steel Tube LLC.
The tubing business is owned by the company's subsidiary, Evraz North America, and the USD51 million deal includes USD8.5 million of proceeds from the sale of inventories. The cash from the deal will be re-invested in the the North American subsidiary.
The structural tubing facility, based in Portland, Oregon, in the US, employs 50 members of staff and produces 5,000 metric tonnes a month of hollow steel sections for construction, industrial and agricultural applications.
Evraz said the disposal is in line with its strategy to divest from its non-core businesses.
"The structural tubing business does not align with our strategic priorities," said Conrad Winkler, president and chief executive 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."
By Joshua Warner; [email protected]; @JoshAlliance
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