LUXEMBOURG CITY, Luxembourg (Oct. 15, 2007) — ArcelorMittal has completed a previously announced deal to buy a 90-percent stake in Rongcheng Chengshan Steelcord — including a 25-percent stake owned by Cooper Tire & Rubber Co. — for $26.6 million.
ArcelorMittal, the world's largest steel producer, forecasts Rongcheng Chengshan Steelcord will generate sales of about $65 million this year.
"This acquisition is an important step for us in expanding in a major market," Lakshmi Mittal, president and CEO of ArcelorMittal said. "We have already shown through our joint ventures in China the value and skills we can bring the Chinese steel industry and we look forward to bringing our expertise to Rongcheng Chengshan Steelcord."
Cooper said it received $7.4 million for its stake in the business, which it acquired in its 2005 purchase of a 51-percent stake in Rongcheng Chengshan Tire Co. Ltd., which it renamed Cooper Chengshan (Shandong) Passenger Tire Co. Ltd. and Cooper Chengshan (Shandong) Tire Co. Ltd.
Cooper CEO and President Roy Armes said the firm continues to divest its interest in noncore businesses, which includes the steel cord business, and that the new owner will remain one of its key suppliers of steel cord.