Severstal’s metalware segment Severstal-metiz has signed a definite agreement with Lincoln Electric Holdings to sell Severstal-metiz Welding Consumables in Russia.

The transaction will include acquiring manufacturing operations and exclusive distribution rights of the Severstal brand of welding consumables.

“This acquisition will add to our manufacturing capacity in this fast growing market and complement Mezhgosmetiz-Mtsensk (MGM), our recent Russian acquisition,” said John Stropki, CEO.

“Severstal’s extensive stick electrode offering, along with solid wire and flux cored wire products and combined with solid wire products from MGM, will make Lincoln Electric a leading consumables manufacturer in the CIS countries. “

Manufacturing production facilities are based in Orel, Russia, with 283 employees. Severstal-metiz Welding Consumables’ 2010 estimated sales were approximately $40M.

The Severstal-metiz transaction is under review by Russian regulatory authorities and is expected to close during the 2011 first quarter.