LIPETSK, RUSSIA: Novolipetsk Steel (NLMK Group), a global steelmaker, and Belgian investment fund SOGEPA (Société wallonne de Gestion et de Participations S.A.), have signed an agreement on joint execution of the NLMK Belgium Holdings (NBH) development strategy.
NBH comprises the production companies and service centers of the NLMK Europe Strip Division (NLMK La Louvière, NLMK Strasbourg, NLMK Manage Steel Center) and two NLMK Europe Plate production companies (NLMK Clabecq, NLMK Verona). NLMK and SOGEPA each hold a 49% equity stake in NBH.
Under the agreement, NLMK and SOGEPA have decided to invest EUR 100 million each in NBH charter capital between 2019 and 2021. The parties agreed to continue supporting NBH bank financing via shareholder guarantees on a parity basis.
Funds allocated to NBH will go towards the execution of Strategy 2022 investment projects, aimed at boosting the production capacity of niche products in both European Divisions.
The signed agreement also provides SOGEPA with a put option to sell NLMK Group 24% of NBH in 2023.
Edited by Kiran Khan