German investor Mutares acquires two of ArcelorMittal’s French wire mills

By IM Staff
Published: Tuesday, 09 July 2019

Mutares has completed the purchase of the TrefilUnion wire products mills in France for an undisclosed sum. The mills are a “perfect” fit, the Mutares CEO said.

German turnaround investor Mutares has completed the acquisition of TrefilUnion, the French wire products subsidiary of steelmaker ArcelorMittal, it said on Monday June 3.

The value of the acquisition was not disclosed.

TrefilUnion has plants in Commercy and Sainte-Colombe-sur-Seine, both in eastern France. It was a part of ArcelorMittal’s WireSolutions business, which has three other plants in France as well as one each in Germany and Poland.

"[TrefilUnion] produces wires and steel ropes with a product portfolio ranging from thin spring wire for the automotive market to heavy specialities for bridges and the pre-stressed concrete market," Mutares said.

Demand for high-carbon wire rod has weakened in recent months on poor demand in the European automotive sector.

Mutares first made a binding offer for TrefilUnion on April 23, which was followed by discussions with French steel trade unions.

"The company complements our goods and services segment," Mutares chief executive officer Robin Laik said. "We are convinced that we are the perfect partner for its successful development."

Mutares previously acquired the French stainless steel welded tubes division of stainless steelmaker Aperam in April 2017.

TrefilUnion reported revenues of €42 million ($47 million) in 2018 and employs more than 100 people at its two plants.