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March 23, 2007 |
Canam Group Acquires an Interest in a Bridge and Structural Steel Plant in China |
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(BOUCHERVILLE, QC) – Canam Group Inc. (TSX – CAM), specialized in the design and fabrication of construction products and solutions, will acquire a 39.2% interest in United Steel Structures Limited (USSL), a Chinese company which operates a bridge and structural steel fabrication plant in Guangzhou in southeastern China. This represents an investment of US$7.7 million by Canam Group. The transaction is subject to the approval of Chinese regulatory authorities.
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 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.
In addition to its stake in USSL, the Canam International business unit of Canam Group has a minority interest in Canam Asia Limited, which operates a plant in Dammam, Saudi Arabia, and another in Ra’s Al-Khaymah in the United Arab Emirates, and which is currently setting up a plant in Ho Chi Minh in Vietnam. Canam International also has minority interests in Canam Russia Limited, Canam Romsa de Mexico S.A. de C.V. and Canam. S.A. which operate their respective plants in Stary Oskol, located 500 kilometers south of Moscow, in Monterrey, Mexico, and in Niort, France.
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.
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| Source: |
| François Bégin |
Communications Manager
Tel.: 418-228-8031
E-mail:
www.canamgroup.ws
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