Corus arrives in Romania

Anglo-Dutch group Corus, the world’s sixth-largest steel maker, is considering a participation in the share capital of Calarasi-based Donasid, a company that emerged by combining the viable assets of the former steel mill Siderca and the financial contribution of Italian group Beltrame.
“We are aware of the opportunities provided by the acquisition of a stake in Donasid Calarasi and we are currently assessing these opportunities, but there is nothing more we can say for now,” Mike Hitchcock, media relations manager with Corus Group told Ziarul Financiar.
Corus posted turnover in excess of 3.5 billion pounds in the first half of the year, but incurred losses of 237 million pounds.
According to sources close to negotiations, Corus is considering a 35% stake, half the participation held by Beltrame, the company that won last year’s tender for establishing Donasid. The tender was organised by the Privatisation Authority.
“If Corus wants Donasid shares, they must talk with the Italians from Beltrame,” the quoted sources said.
Corus is credited as the world’s largest maker of train rails and its name has been mentioned in the negotiations regarding Donasid’s establishment ever since the beginning. However, its involvement would have consisted mainly in granting technology and know-how licences for the rail production.
According to the above-mentioned sources, Corus is now willing to buy a chunk of Donasid’s capital, after merger negotiations with Brazil’s largest steel maker, CSN, fell through. The group’s officials are scouring the market for new investment opportunities, such as Donasid.
The same sources say Corus has already sent a team of more than 20 specialists in Calarasi, last week, to assess the plant’s situation, with a decision to be made by the end of December.
Donasid forecasts point to annual output of 500,000 tonnes of rail in 2004-2005, the equivalent of over 150 million dollars.