PLANT

ShawCor sells stake in Socotherm Brasil joint venture to partner

Company said it expects to realize US$30 million in net proceeds.


TORONTO – ShawCor Ltd. has signed a deal to sell its joint-venture interest in Socotherm Brasil to its partner, Tenaris.

The company said it expects to realize US$30 million in net proceeds, plus the potential for more based on future performance.

Socotherm Brasil operates a pipe coating facility which is managed by Tenaris in Brazil.

The company said the sale was part of a strategy to focus on operations it manages and controls.

ShawCor expects to record an after tax loss of approximately $4 million on the sale in its fourth quarter.

The company has over 75 manufacturing and service facilities around the world.

©The Canadian Press