Ampco-Pittsburgh Expands Steelmaking Capabilities Through Acquisition
11/01/2016 - Ampco-Pittsburgh Corp. is acquiring Canadian specialty steel producer ASW Steel Inc. for US$13.1 in cash and debt, Ampco-Pittsburgh has announced.
“This acquisition is a very important element in Ampco-Pittsburgh’s strategic diversification plan,” said Ampco-Pittsburgh chief executive John Stanik said in a statement.
“ASW’s proven broad expertise in flexible steel refining methods will provide us with the capabilities to manufacture the additional chemistries needed to expand our reach in the open-die forging market. The transaction also enhances our ability to grow in markets in which we currently participate and to add new markets for customers in the oil and gas, power generation, aerospace, transportation, and construction industries.”
Located in Welland, Ontario, ASW makes cast billets and ingots in a variety of sizes and lengths. It can produce approximately 100,000 tons of carbon, alloy and stainless steels annually and has an array of refining capabilities, including argon oxygen decarburization, vacuum oxygen decarburization, vacuum degassing, and ladle metallurgy.
Ampco-Pittsburgh is paying US$3.5 million in cash for the business and assuming US$9.6 million in debt.
It said ASW annual revenues are about CA$65 million. It will operate as an indirect subsidiary of Union Electric Steel Corp., a wholly owned operating subsidiary of Ampco-Pittsburgh.
“ASW’s proven broad expertise in flexible steel refining methods will provide us with the capabilities to manufacture the additional chemistries needed to expand our reach in the open-die forging market. The transaction also enhances our ability to grow in markets in which we currently participate and to add new markets for customers in the oil and gas, power generation, aerospace, transportation, and construction industries.”
Located in Welland, Ontario, ASW makes cast billets and ingots in a variety of sizes and lengths. It can produce approximately 100,000 tons of carbon, alloy and stainless steels annually and has an array of refining capabilities, including argon oxygen decarburization, vacuum oxygen decarburization, vacuum degassing, and ladle metallurgy.
Ampco-Pittsburgh is paying US$3.5 million in cash for the business and assuming US$9.6 million in debt.
It said ASW annual revenues are about CA$65 million. It will operate as an indirect subsidiary of Union Electric Steel Corp., a wholly owned operating subsidiary of Ampco-Pittsburgh.
