Flachform Stahl GmbH steel service center from Arcelor

Hövelmann & Lueg GmbH, a Salzgitter Group company, acquires Flachform Stahl GmbH steel service center from Arcelor

At its Schwerte location, the Hövelmann & Lueg (Salzgitter) Steel Service Center has acquired the neighboring Flachform Stahl GmbH (Arcelor). A corresponding agreement was signed on June 2, 2006. As a result of the acquisition, for which anti-trust approval is still required, one of Germany's highest performing Steel Service Centers (SSC) is being created in Schwerte.

While Hövelmann & Lueg is predominantly active in the market for cross-sectionally cut products as well as for tailored blanks, Flachform is operating several slitting lines. Both companies have already been cooperating since a considerable period of time.

At the Schwerte location, around 85 Flachform employees produce 250,000 tons of slit coils per year.

As part of a cooperation arrangement, Arcelor will in future also supply customers from Schwerte as well as concentrate on its other steel service centers in Germany.

With its broad product palette, the new SSC, will have an output of around 500,000 tons of steel products per year. As a result of the acquisition, Hövelmann & Lueg is expanding its range of products and services and will benefit from synergies generated by the geographic proximity of the facilities.

No disclosures have been made with respect to the price of the transaction.