Steel group LNM Holdings, owner of the main stakes in Ispat Sidex and Tepro Iasi, may significantly increase its presence on the Romanian market this year. LNM is the only group to have submitted a bid for taking over steel mill Siderurgica Hunedoara and pipe producer Petrotub Roman.
Siderurgica and Petrotub have been placed under receivership and were put up for sale by the Authority for Privatisation (APAPS) on July 23.
Although Russian group TMK had also voiced interest in acquiring the two companies, eventually LNM Holdings was the only group to submit a bid. TMK is one of the world’s largest steel pipe producers and holds the main stake in Romanian company Artrom Slatina.
“The bid submitted for Petrotub and Siderurgica Hunedoara goes to show LNM is serious about expansion in the region. Given the portfolio of Siderurgica products, the steel mill fits among the companies that LNM already holds in Romania. As for Petrotub, LNM’s strong presence on the international market and its ability to secure the company’s supplies will help Petrotub to recover and consolidate its economic position,” Narendra Chaudhary, general manager of Ispat Sidex and LNM’s representative in Romania, told Ziarul Financiar.
In order to achieve vertical integration, LNM bought another pipe producer this year, Tepro Iasi, as Ispat Sidex was the main steel supplier for the company. LNM bought the Galati-based steel mill at the end of 2001. Both companies were taken over from APAPS.
laurentiu.ispir@zf.ro