Evraz has agreed on a sale of its Stratcor unit to US Vanadium. It became known about the upcoming deal in mid-August thanks to the information posted on the Vanadiumprice.com portal.
In early August, the company submitted a report informing that in July, they had signed an agreement to sell the subsidiary to a third party but the buyer’s name was not released to the public. There was just the information that the deal would close in September. The transaction amount was not disclosed too.
Stratcor is the subsidiary of Evraz, operating in the United States. Earlier, Evraz CEO Aleksandr Frolov said that the American company did not justify the costs due to the vanadium prices. For this reason, it was decided to sell Stratcor to focus on the vanadium business in the Russian Federation.
Stratcor was purchased by Evraz in 2006 for $ 110 million. The company is located in Hot Springs (Arkansas) and produces about 12 million pounds of vanadium oxide per year. This raw material is used in the production of various alloys, which are then used in aircraft and space construction. Vanadium is also used in the production of chemicals, batteries, etc.
After the sale of Stratkor, Evraz will have two vanadium production facilities: EVRAZ Vanadium Tula and EVRAZ Nikom (the Czech Republic). The first asset is the largest production in Europe.
The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group