EVRAZ plc (LSE: EVR) announces that its North American subsidiary EVRAZ North America (“ENA”) has signed an agreement with Maruichi Oregon Steel Tube, LLC to sell ENA’s structural tubing business (formerly known as Columbia Structural Steel) in Portland, Ore., for approximately US$51 million in cash, including approximately US$8.5 million of proceeds from the sale of inventories.
Proceeds from the sale will be re-invested in ENA as well as used to pay down the ABL balances.
The structural tubing facility produces 5,000 metric tonnes/month of hollow steel sections (HSS) for construction, industrial and agricultural applications. Its disposal is in line with EVRAZ plc strategy of divesting of non-core businesses.
The mill has 50 employees, all of whom will be offered positions with Maruichi.
“The structural tubing business does not align with our strategic priorities,” said Conrad Winkler, President and CEO of EVRAZ North America. “We are pleased to sell it to Maruichi with an agreement to supply a significant part of their steel coil needs, and we appreciate their interest in retaining the seasoned workforce.”