The Ruias-owned Essar Steel has acquired UK-based Servosteel, the largest independent steel processor in UK, with a processing capacity of 500,000 tonne per annum. Though the company did not disclose the buyout amount, the acquisition is said to be part of Essar Steel’s distribution strategy. This is Essar Steel’s first acquisition in the UK.
Located in Dudley, a major steel consuming hub, Servosteel was acquired by the subsidiary of Essar Steel Holdings, Essar Steel International BV. Servosteel offers a one-stop service for SCS (smooth clean surface technology), pickling, slitting and decoiling and various individual custom tailored services. In a bid tap the growing steel market, Essar Steel is focusing on service centres that provide tailor-made products of the metal to consumer industries, including ones in the automobile and consumer durables sectors.
Essar Steel has a global steel production capacity of 8.6 million tonne per annum. It operates seven service centres in India, Indonesia and Canada with aggregate capacity of over 3 million tonne per annum.
Earlier this year, its subsidiary Essar Steel Middle East had proposed setting up of a 2,50,000-tonne processing and service centre in Dubai’s Jebel Ali Free Zone.