LNM Holdings, which is seeking to increase its stake in Iscor, plans to boost the South African manufacturer’s role in the motor industry with the addition of new-generation technology.

LNM Holdings, which is seeking to increase its stake in Iscor, plans to boost the South African manufacturer’s role in the motor industry with the addition of new-generation technology.

The company is a member of the world's second-largest steel producer, the LNM Group. But, according to , it would only be willing to accelerate the sharing of its technology once it had a larger stake in Iscor.

Iscor needs its minority shareholders to approve LNM Holdings' partial offer when they vote on Wednesday. After a three-week postponement, Iscor minorities will be asked to decide whether they are willing to forfeit their right to a mandatory offer from LNM once its shareholding exceeds 35 per cent.

If LNM has its way with Iscor, it could earn up to 10 percent of Iscor's issued share capital while delivering a targeted R700 million in cost savings over three years, the report said.

"As a result of increasing its shareholding in Iscor, LNM expects to be in a position to transfer a greater level of technology to further enhance its purchasing and marketing co-ordination and further accelerate Iscor's transformation into a world-class producer with global access," reads the LNM circular to Iscor shareholders.

The largest supplier of motor steel in the US, LNM's customer base includes Honda, DaimlerChrysler, Ford and Toyota.

Iscor is currently in talks with the local motor industry over its pricing policy. CARtoday.com reported last month that Iscor, citing the need to price the steel it sold in South Africa in line with the dictates of the global market, had announced a 19,7 per cent January price increase for automotive steels.

Since then, Iscor has been holding one-on-one discussions with manufacturers as a basis for setting new price levels for the year, reported.

Original article from Car