CUMI enters into MoU to purchase VAWs shares

Chennai, June 9 (UNI) Carborundum Universal Limited (CUMI) has entered into a binding MOU for the purchase of 84.14 per cent of the ordinary shares of Volzhsky Abrassive Works (VAWs) of Russia.

Volzhsky Abrassive Works (VAWs) was the largest producer of Silicon Carbide (SiC) abrassives in Russia, with 65,000 tonnes per annum installed capacity. VAW also produces Bonded Abrassives and Refractories and its sales in 2006 was about USD 54 million, a company release here said.

VAW management had been able to grow VAW by maximising the SiC production as well as bring in sound management practices. To take VAW to its next growth phase, clearly needed a Strategic Investor with interests in Abrassives, Grains and Refractories. CUMI, was one of the two companies globally with this range, and was hence a logical choice, it said.

CUMI was a fully vertically integrated company with operations in Australia, Canada, China, Middle East, US and in India. CUMI brings to VAW its brands, market access, application engineering expertise and global management practices. This will help VAW to grow its Bonded and Refractory business as well as to move a part of the high volume SiC business to new value added micro abrassives, the release said.

The change in ownership was expected to benefit VAW's customers, employees and the community in Volzhsky as CUMI was known for its Good Governance Practices. The deal will be formally concluded as soon as the necessary clearances, including an approval by Russian Federal Antimonopoly Service were obtained next month.

UNI