ELVALHALCOR signs agreement to buy 50 pct of NEDZINK

ELVALHALCOR Hellenic Copper and Aluminium Industry SA on Thursday announced that it has reached an agreement with the non-listed company “Koramic Holding SA”, based in Kortrijk Belgium, to acquire 50 pct of the capital of the non-listed company “NEDZINK BV” based in Budel, Netherlands via a capital increase scheme.

According to the agreement, ELVALHALCOR will contribute approximately 15 million euros. These funds shall be used to finance part of a 20-million-euro investment programme at NedZink – the balance of the investment shall be financed by NedZink.

NedZink has been operating since 1973 in the rolling of titanium zinc, originally with the trade name “Kempensche Zinc Company”. In 1995 the production of titanium zinc was acquired by Koramic and the plant in Budel Dorplein was renamed to “NEDZINK BV”. The production plant is located in the city of Budel-Dorplein in the Netherlands, the capacity is 24 thousand tons, which NedZink sells through its sales network in the Netherlands, Belgium, Germany, and France, and many other countries as well. ELVALHALCOR has operated in the production of titanium zinc since 2004, originally at the former HALCOR METAL WORKS S.A. facilities in Athens and then through its subsidiary “SOFIA MED AD” in Bulgaria, from 2011 until mid-2015 when SOFIA MED temporarily suspended production.

The companies ELVALHALCOR and Koramic aim to create a joint venture with the purpose of developing production in the area of titanium zinc, by increasing the production capacity of NedZink’s lines and combining Nedzink’s lengthy experience in zinc rolling with ELVALHALCOR’s experience in continuous melting, casting and rolling of zinc, as well as other metals.

The aforementioned agreement between ELVALHALCOR – Koramic is subject to regulatory approval by the competent competition authorities.