Venture Investments & Yield Management
VIYM INVESTS IN AKHTUBA ► GROWING PRODUCER OF SPUN-CAST STEEL PIPES
Venture Investments & Yield Management / Key word(s): Private Equity VIYM has successfully acquired a stake in Akhtuba, a fast growing research, development and production company specialized in manufacturing of special spun-cast steel pipes and equipment for metallurgical, petrochemical, and energy industries. The deal objective is to expand the Company’s production capacity, increase its share on the Russian market of special spun-cast steel pipes, and support the development of new products. COMPANY FEATURES * Akhtuba owns a unique for the Russian market production technology based on the advanced cost saving (without any loss in quality) centrifugal casting method. The Company’s key business indicators: current production capacity – 500 tonnes of steel pipes per year, annual sales – mUSD 3.1, 120 employees. Since 2012, the Company has been realizing the investment program in order to increase its production capacity and extend its product line to meet changing consumer needs and expectations. The Company’s development is supported by the Agency for Strategic Initiatives. MARKET COMMENTARY * The key consumers of the Company’s products are steel and petrochemical manufacturers, energy companies, etc. At present, there is no sufficient local production of special spun-cast steel pipes in Russia. The domestic demand has mostly to be satisfied by imports of such pipes from Western Europe and Ukraine. * Important to note * The most perspective segment for further development – special steel pipes for heating and nuclear industries. The world nuclear industry is expected to see 80% growth over the next 25 years (The Outlook for Energy by ExxonMobil). DEVEPOPMENT STRATEGY * In a relatively short time, the Company plans to realize an ambitious technical development program to increase its production capacity and ensure the stable supply of special steel pipes and equipment to the Russian market. The main target of the Company for 2013-2014 is to strengthen its position in the Russian petrochemical equipment market and to get products certified in the state nuclear energy corporation Rosatom (the Russian state nuclear energy corporation Rosatom is one of the world’s leaders in the atomic market which provides construction services of nuclear power stations around the world). QUOTE * ‘On the growing market of special steel spun-cast pipes in Russia which is currently characterized by a lack of strong competition, Akhtuba represents an exciting investment opportunity to take an active part in creating a new industry leader’, declared Pavel Arbonen, the newly appointed acting Head of VIYM St. Petersburg Investment Office. End of Corporate News 25.09.2013 Dissemination of a Corporate News, transmitted by EquityStory.RS, LLC – a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. EquityStory.RS, LLC’s Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de |
231844 25.09.2013 |