The Hindu Business Line : Carborundum Universal to acquire Russian co

Chennai June 9 Carborundum Universal Ltd (CUMI) of India has entered into a binding MoU for the purchase of 84.14 per cent of Volzhsky Abrasives Works (VAW) located in the city of Volzhsky in Volgograd region, Russia.

VAW is the largest producer of silicon carbide abrasives in Russia, with 65,000 tonnes per annum installed capacity.

The company also produces bonded abrasives and refractories. Its sales in 2006 were about $54 million. The VAWmanagement had been able to grow the company by maximising silicon carbide production as well as bring in sound management practices.

To take VAW to its next growth phase, it was felt it needed a strategic investor with interests in abrasives, grains and refractories. CUMI is one of the two companies globally with this range, and was hence a logical choice.

CUMI is a fully vertically integrated company with operations in Australia, Canada, China, West Asia, US and India.

The company brings to VAW its brands, market access, application engineering expertise and global management practices. This will help Volzhsky Abrasive Works to grow its bonded and refractory business as well as to move a part of the high volume silicon carbide business to new value-added micro abrasives.

"The deal will be formally concluded as soon as the necessary clearances including an approval by Russian Federal Antimonopoly Service are obtained which is expected in July," says a press release from the company.

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