AO Severstal, one of the world’s leading steel and steel-related mining companies, last month completed the acquisition of 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 manufacturing division and will be under the operational management of Sergey Kovryakov, CEO of Severstal-Metiz.
Sintez-CIP’s carbonyl iron powders are widely used in the Metal Injection Moulding (MIM) and Powder Metallurgy (PM) industries as well as for electronic components manufacture and the production of diamond tools.
Alexander Shevelev, CEO of Severstal, commented, “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. 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 a significant share 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. 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”.