Ryerson Completes Buyout of China Joint Venture
07/13/2010 - Ryerson Holding Corp. has, via its subsidiaries, acquired Van Shung Chong Holdings' (VSC) 20% stake in Ryerson China Ltd., a joint venture between Ryerson and VSC formed in 2006. Ryerson China Ltd. is now a wholly-owned Ryerson subsidiary.
Ryerson Holding Corp. has, via its subsidiaries, acquired Van Shung Chong Holdings' (VSC) 20% stake in Ryerson China Ltd., a joint venture between Ryerson and VSC formed in 2006. Ryerson China Ltd. is now a wholly-owned Ryerson subsidiary.
Terms of the transaction were not disclosed.
"Increasing our investment and acquiring the joint venture outright reflects our commitment and confidence in the Chinese market," said Frank Munoz, President of Ryerson China. "With our substantial footprint in China, Ryerson will continue its growth strategy to effectively serve the local Chinese market as well as our international and U.S. customers."
Ryerson China Ltd. was formed as a partnership with VSC and was previously known as VSC-Ryerson China Ltd. Ryerson originally held 40% of the joint venture when the partnership was formed, subsequently increasing its ownership to 80% in the fourth quarter of 2008.
Ryerson China Ltd. is based in Shanghai and operates processing and service centers in Guangzhou, Dongguan, Kunshan, Tianjin, and Wuhan, along with a sales office in Shanghai. Ryerson claims to be the only North American metals service center with a significant presence in China, the largest metals-consuming market in the world.
"As we solidify and strengthen our presence in the Chinese market, we will evaluate new locations in the region that present compelling growth opportunities and allow us to better serve our customers," said Munoz.
Ryerson is a leading North American processor and distributor of metals, with operations in the United States, Canada, and Mexico, as well as in China. The company distributes and processes various kinds of metals, including stainless and carbon steel and aluminum products.
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