ArcelorMittal, the world's biggest steel company, has received anti-trust approval from the European Commission with respect to the formation of a joint venture (JV), STEELCAME, with the Cellino Group.
ArcelorMittal has a 35% shareholding in STEELCAME, and Cellino Group holds the remaining 65%.
ArcelorMittal’s was looking for a strategic partner for its SoluStil business to strengthen its competitiveness, which has been under pressure in the highly challenging market in which it operates.
STEELCAME’s assets will consist of four former SoluStil sites in the Rhône-Alpes region, namely La Boisse, Trévoux, Arnas, Montélier, together with Stalobrex, a Polish steel processor owned by ArcelorMittal. The Cellino Group will contribute two assets to the JV, the Italian company Intek, and the Polish company SHL, both active in steel processing and steel components manufacturing.
Vijay Goyal, CEO, ArcelorMittal Distribution Solutions, said that the JV agreement concludes the company's search for a strategic partner for its SoluStil business. He said he was confident that the Cellino Group was the right partner to strengthen and improve the business by improving it's operational and financial performance.
“This deal safeguards the future of SoluStil’s business and its workforce. Significant synergies exist between the two businesses and combining the various assets in a joint venture will facilitate knowledge exchange, investment, enhanced customer service levels and enable STEELCAME to develop its customer base.”
Fabrizio Cellino, CEO Cellino group, commented that assets contributed by the two partners to the newly founded business would guarantee 'a wide and diverse portfolio of industrial processes and technologies' capable of satisfying customer needs 'in a multitude of industries'.
He added that the established knowledge and experience, of the Cellino Group, in the field of steel components manufacturing, combined with AMDS’ high skills in steel processing, will allow STEELCAME to flourish in the European markets of agricultural and construction equipment, truck business and the energy sector among others.
SoluStil was formerly a part of ArcelorMittal Europe’s Distribution Solutions business, and is a leading European sheet metalwork company. Prior to the creation of STEELCAME, four sites of ArcelorMittal’s SoluStil business, in Héricourt, Châteaubriant, Ancenis, Biars-sur-Cère, were transferred into a newly formed company, Acierplus, and subsequently sold to ArcelorMittal CLN Distribuzione Italia, a joint venture between ArcelorMittal and the CLN group, on 1 December 2016 after receiving clearance from the European Commission on 22 November.
ArcelorMittal CLN Distribuzione Italia specialises in steel distribution and solutions for industrial customers. Acierplus will benefit from its operating expertise and existing business relations with industrial partners.