Lincoln Electric Buying Severstal’s Welding Business
Expands Russian market presence with second consumables business acquisition
Lincoln Electric Holdings Inc. is making its second expansion in Russia in the past two months with a definitive agreement to buy OOO Severstal-metiz: welding consumables, a manufacturer of wire and wire products, as well as other welding consumables. The value of the purchase is not known, but it follows Lincoln’s November acquisition of Mezhgosmetiz-Mtsensk OAO (MGM).
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"This acquisition will add to our manufacturing capacity in this fast -growing market and complement MGM, our recent Russian acquisition," stated Lincoln Electric chairman and CEO John M. Stropki. MGM was the first Russian manufacturing holding for the Cleveland-based welding equipment and consumables company, and the purchase brought with it a distribution network for welding consumable products.
Like MGM, OOO Severstal-metiz: welding consumables has manufacturing facilities in the Orel region, in western Russia, and it brings distribution rights to the Severstal brand of welding consumables.
The seller, OAO Severstal, is one of the world's largest integrated steelmaking and mining companies.
"Severstal's extensive stick-electrode offering, along with solid wire and flux-cored wire products, when combined with solid wire products from MGM, will make Lincoln Electric a leading consumables manufacturer in the CIS countries,” Stropkie said. “The two acquisitions complement our imported products offering and will expand our market presence in the region."
"The sale of OOO Severstal-metiz: welding consumables will allow us to concentrate fully on our core business (wire and wire products) and continue to provide our clients with competitive product of the highest quality," stated Oleg Veter, CEO of the Severstal-metiz group. That group includes all of OAO Severstal's metalworking holdings, which supplies construction, oil and gas, automotive, metallurgy and engineering sectors.
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