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May 30, 2007 |
Canam Group Completes the Acquisition of a 49% Interest in USSL in China |
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(BOUCHERVILLE, QC) — Canam Group Inc. (TSX – CAM), specialized in the design and fabrication of construction products and solutions, today announced that it has completed the acquisition of a 49% interest in United Steel Structures Limited (USSL), a Chinese company which operates a bridge and structural steel fabrication plant in Guangzhou in southeastern China. The company’s stake in USSL increased from 39.6% to 49% during the talks that followed the agreement in principle signed in March. Canam Group invested US$9.2 million in this joint venture.
Canam Group chairman of the board and CEO Marcel Dutil stated that the geographic expansion of the company’s area of operation in emerging countries is part of its long-term development strategy. This venue for additional production capacity in China will allow Canam Group to take greater advantage of economic activity in North America and could eventually give Canam Group’s value-added products access to the Chinese market.
USSL operates a bridge and heavy structural steel plant with an annual production capacity of 40,000 tons and relies primarily on export markets. Guangzhou Shipyard International Co. Ltd. is the majority shareholder in USSL.
Canam Group Inc. is an industrial company operating 11 plants specialized in the design and fabrication of construction products and solutions. The company employs close to 3,000 people in Canada, the United States, Romania and India, and has partnerships with companies in Mexico, France, Saudi Arabia, the United Arab Emirates, Russia and now China.
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| Source: |
| Jasmin Gosselin |
Vice President, Communications
Tel.: 450-641-4000 (Boucherville)
Email:
www.canamgroup.ws
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