Anshan acquires major stake in UK service centre USS through Ansteel

Chinese steel producer Anshan Iron and Steel Corporation (Anshan), through Ansteel Holdings (UK) Ltd, is finalising their agreement to purchase two thirds of the share capital of UK steel service centre USS Ltd. Ansteel Holdings (UK) Ltd, like Ansteel Spain SL, is a joint venture company between Anshan and Stemcor. The balance of shares is to be retained by former owners, the Weaver family, who will continue to run the company. USS specialises in coil slitting for the construction industry.

Based in Halesowen in the West Midlands, USS can slit coils weighing up to 25 tonnes, thickness ranging from 0.33-3.50mm and width ranging from 400-1,525 mm. The majority of material slit is galvanised coil, mainly direct for end-users with some slitting undertaken on behalf of third parties. Typical customers are UK-based section rollers serving the construction industry.

Zhang Xiaogang, President of Anshan Iron and Steel Corporation, said: "Anshan is keen to expand its footprint in Europe and is particularly interested in value-adding services that complement the product range. Last year we purchased a 78% stake in Italian steel processor Viganò and now we are making a similar investment in the UK with USS. The Weaver family have extensive experience in the steel service centre business and will be a valuable addition to Ansteel's European business."

Julian Verden, Group Managing Director at Stemcor, the world's largest independent steel trader, said: "We are delighted to enter into this second European joint venture with Anshan, building on the success of Ansteel Spain SL in the Iberian market. In addition to their existing construction and general industrial steel products, Anshan focus on producing high-end value added flat products - such as metallic coated, colour coated and silicon steel."

Anthony Weaver, Managing Director of USS, said: "We are very excited to be working more closely with our new partners, whom we have dealt with for many years. Looking forward we feel that their investment will enhance our customer service and expand our product offering."