TEXT OF STORY
Stacey Vanek-Smith: Markets aside, the Russians are making major inroads into the U.S. steel industry, as Stephen Beard has more.
Stephen Beard: This is the biggest takeover in the global steel industry this year. Novolipetsk of Russia is paying $3.5 billion for John Maneely.
The Ohio-based company is not a steel maker itself, but it is one of the biggest manufacturers of pipes and tubes in America. Its products are used widely in plumbing, scaffolding and electric wiring.
Analyst Henry Cooke says the two companies will make a perfect fit:
Henry Cooke: Russia itself is a very low-cost place to make basic steel products. Those products can be exported from Russia into the States to feed plants like John Maneely so that they can then add value.
Russian steel makers now have a major presence in the U.S. They control almost 10 percent of U.S. steel-making capacity. And that investment is likely to grow, as the Kremlin encourages Russian companies to make more and more acquisitions abroad.
In London, this is Stephen Beard for Marketplace.
We’re here to help you navigate this changed world and economy.
Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.
In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.
Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.