"ArcelorMittal and Primex (Germany) have reached an agreement whereby ArcelorMittal Stainless International is acquiring 35 per cent stake in Uginox Sanayi ve Ticaret Limited Sirketi, which was owned by Primex," a statement from ArcelorMittal said.
It added that the company has also decided to gradually double over the coming years the size of its stainless service operations, which will be renamed ArcelorMittal Istanbul stainless Servie Turkey.
Uginox was formed in 1997 as a joint venture between Arcelor and Primex. While Arcelor had 65 per cent stake in the JV, Primex had the rest.
Uginox operates a coil processing and service centre in Gebze, close to Istanbul.
Most of its business is dedicated to servicing the fast growing automotive and white goods markets.
In 2007, it processed about 38,000 tonnes of stainless steel and had revenues of about $102 million, the statement said.
Commenting on the acquisition of 35 per cent stake in Uginox, CEO of ArcelorMittal Stainless, Jean-Yves Gilet said, "This transaction consolidates our position on a fast growing market and allows us to follow our key customers from the appliance and automotive sectors in their own development".
