STOCKHOLM, Sweden, June 30, 2003 (PRIMEZONE) -- Boliden's (TSE:BLS)(Other OTC:BDNNF) British brass company, Boliden MKM Limited, has acquired the operations of the British brass manufacturing company, Cerro Extruded Metals Limited, from the Marmon Group Limited. This acquisition will enable Boliden to merge the two businesses and concentrate production, thereby creating a stronger brass producer in the UK with increased competitiveness and enhanced profitability.
In April 2003, Boliden MKM signed a letter of intent regarding the acquisition of Cerro Extruded Metals Limited operations from the Marmon Group Limited.
"This acquisition is entirely in line with Boliden's ambition to play an active part in the ongoing restructuring of the European brass industry. This acquisition creates industrial synergies which will enable us to establish a stronger player in the British brass industry with increased profitability," stated Jan Johansson, President and CEO of Boliden.
The purchase price is GBP 5 million and the acquisition will primarily be financed by means of a substantial reduction in the operating capital requirement as production is concentrated.
This acquisition is expected to generate an increase in Boliden MKM's turnover to GBP 60 million and a total annual production of 50 000 tonnes of brass.
This agreement has been approved by the appropriate competition authorities in the UK and Germany.
For further information, please contact: Jan Johansson, President and CEO, Boliden telephone +46 8 610 1602, +46 70 555 02 02 Bengt Olof Johansson, Vice President, Boliden Fabrication telephone +46 70 217 69 89
Boliden is an international mining and metal-producing company that mines, processes and markets copper, zinc, lead, gold and silver. Boliden owns seven mines and two smelting plants in Sweden and one mine in Canada. The range of activities also includes sales of technology. Copper and brass products are manufactured at plants in Europe. The number of employees is approximately 3,800 and the turnover amounts to approximately 10 billion SEK annually. The Boliden share is quoted on the Stockholm Stock Exchange in Sweden as well as on the Toronto Stock Exchange in Canada. www.boliden.com
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