Salzgitter’s Hövelmann & Lueg GmbH intends to buy Arcelor’s steel service centre Flachform Stahl

Salzgitter’s subsidiary Hövelmann & Lueg is to buy Arcelor’s steel service centre Flachform Stahl located in Schwerte (Ruhr/Germany).

The activities of both steel service centres are complementary, with Hövelmann & Lueg mainly active in the market for cut to length products while Flachform Stahl operates several slitting lines.

In Schwerte, Flachform Stahl has a capacity of about 250.000 tons annually, employing approximately 85 associates. Hövelmann & Lueg is to take over the staff as well as facilities and the equipment.

Arcelor will continue hire-slitting (toll processing) in Schwerte. This transaction allows Arcelor to concentrate on its Steel Service Centre network in Germany.

The combination of both entities will lead to the creation of one of Germany’s most attractive steel service centres with a wide product range and an annual capacity of approximately 500.000 tons. The move is to allow Hövelmann & Lueg to expand its offering in terms of products and services, deriving synergies thanks to the proximity of the two sites.

The transaction is subject to customary conditions and approvals, for instance by competition authorities. The price of the transaction was not disclosed.