Severstal completes acquisition of carbonyl iron powder producer Sintez
March 17, 2020
PAO Severstal, a leading steel and steel-related mining company headquartered in Moscow, Russia, has acquired 100% of the shares of Sintez-CIP Ltd and Sintez PP Ltd, the owners of the only producer and supplier of carbonyl iron powders in Russia and the CIS region.
Sintez-CIP will become part of Severstal’s metalware manufacture division, under the operational management of Sergey Kovryakov, CEO of Severstal-metiz.
Sintez-CIP produces a wide range of unique carbonyl iron powders for firms around the world. Carbonyl iron powder is used in various Powder Metallurgy processes and Metal Injection Moulding technologies. It is also widely used in electronics, primarily in the automotive industry (electronics in cars, electric vehicles), as well as in the manufacture of household appliances, mobile phones, computers, and televisions.
Sintez-CIP is reported to be the second-largest producer of these products globally, holding approximately 10% of the market share. The company produced more than 1,500 tons of finished goods last year, and exported more than 95% of its sales.
Alexander Shevelev, CEO of Severstal, commented on the acquisition, “This investment reflects our focus on two of Severstal’s strategic priorities – ‘New Opportunities’ and ‘Excellent Customer Experience’. Through the implementation of breakthrough technologies, we are bringing unique solutions to the market in order satisfy the needs of modern customers, as well as, in some cases, anticipating their future demands.”
“Integrating Sintez-CIP into Severstal will add a new trajectory of development for the company into promising markets such as electronics, where we expect sustained growth through key developments,” he continued. “Examples include the electrification of transport, the development of telecommunications infrastructure, mobile electronics, and finally ‘Binder Jetting’, an inkjet 3D printing technology, which is considered to be an important technological breakthrough due to its high processing speed and low costs.”
Andrey Laptev, Director of Business Development and Corporate Venture Projects at Severstal, added, “Sintez-CIP has unique competencies that have enabled it to occupy 10% of the fast-growing global carbonyl iron market, and continually increase its presence in the most promising segments of the sector.”
“We are aiming for consistent growth in this high-margin market, using the broad competencies and market opportunities Severstal has cultivated,” he explained. “Our overarching goal is to create a world-class Powder Metallurgy centre of excellence within the business. Sintez-CIP allows us to expand our market influence, and also creates a springboard for us to enter international markets.”
