Stemcor, the world’s largest independent steel trader, has acquired two thirds of the share capital of Spanish steel service centre Servichap 99 SL via a capital increase.

The remaining share capital is to be retained by the existing shareholders, MD Mr Jose Maria Alonso Gutierrez and minority investor Quipplan Technos SL.

Servichap is a steel service centre operating from a site in Peralta, Navarra, in the north east of Spain. Its main processing activities are coil slitting and cutting to length. The company serves approximately 200 end user customers in the domestic construction, automotive, agriculture and furniture sectors.

Mr Martin Pryor MD of General Steels for Stemcor’s European business said that "Stemcor continues to seek investments in steel stockholders and service centers in regions where we are active in trading and import distribution. The investment in Servichap is a natural addition to our existing business activities in Spain."

Mr Jose Maria Alonso Gutierrez MD of Servichap said that "Over the past few years much of Servichap's steel has been purchased through Stemcor. This investment will further strengthen our working relationship, enable us to increase volumes, invest in more processing facilities and improve the service offering to our valued customers."