Russian steelmaker NLMK has acquired National Laminations group, an electrical steel service centre in India, for an estimated valuation of $8 million (Rs 40 crore), according to a company statement on Friday.
The acquisition will enhance NLMK’s position in the Indian market as one of the leading suppliers of grain-oriented electrical steel, controlling the entire process from crude steel production to final delivery.
National Laminations group is a grain-oriented (transformer) steel processing and distribution company with around 50 employees and it caters processed materials to a wide range of national and international transformer producers. The company owns processing and warehousing units located near Mumbai, with capacities of 16,000 TPA and 15,000 TPA, respectively. It also owns another warehousing facility (with a capacity of 40,000 TPA) only 20 km away from Mumbai and its close proximity to the port facilitates easy delivery of imported materials.
The strategic location of these units not only gives easy access to customers in western India but also enhances the company’s pan-India distribution capability by reducing delivery time.
NLMK is an integrated global steel company with more than 15 MTPA crude steel production capacity. It is one of the world’s largest producers of grain-oriented (transformer) steel with a total capacity of about 340,000 TPA. The company expects to start manufacturing premium grades in 2012, reaching about 140,000 TPA or 40 per cent of the total grain-oriented steel production capacity.