MOSCOW, January 22 (RIA Novosti) - Severstal [RTS: CHMF] is interested in acquiring assets in North and Latin America, Europe, and Asia, the Russian steel giant's CEO said Monday.
"In 2007, we plan to expand both by enhancing the effectiveness of existing assets and through mergers and acquisitions," Alexei Mordashov said.
He said Severstal is especially interested in assets in North America and Europe, where the steel market potential is underestimated, and that the company's other focus will be on regions showing high market growth - Russia, Asia, and Latin America.
In addition, he said Severstal would soon take part in a tender for the delivery of steel pipes for the Nord Stream pipeline, which will link Russia to Germany via the Baltic Sea.
Mordashov said some of the deals could be signed before the end of the year, and that a joint venture formed by Severstal and Anglo American last October will be registered soon.
He said Severstal will hold a 51% stake and Anglo American 49% in the JV.
The two companies formed an alliance to prospect for nickel, copper and zinc deposits in Russia.
Prospecting will begin in the Republic of Karelia, in northwest Russia, on the border with Finland, and in the future the companies intend to jointly develop mineral deposits in other Russian regions.
Anglo American, headquartered in London and Johannesburg, is one of the world's largest mining companies, and holds a 45% stake in diamond giant De Beers.
Severstal is Russia's largest steel producer. The company's primary mill is in Cherepovets, in Northwest Russia.
Severstal said last Monday its steel production grew 2.3%, year-on-year, in 2006, to 11 million metric tons.
Russia's second-largest steelmaker said in a press release: "The results were largely achieved through the completion of some large investment measures in the second half of 2006, which boosted output and ensured the manufacture of new types of high value-added products that are in demand in various industrial markets."
Last year, Severstal sought a merger with the world's second-largest steelmaker, Arcelor, but the deal, inked May 26, fell through when it was rejected by Arcelor shareholders, to clear the way for a takeover of the Luxembourg-based company by the world's leading steel producer, Mittal Steel.
