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GISMETEO.RU
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Metinvest buys 50% of Zaporizhstal parent
Journal Staff Report

KIEV, July 11 - Ukraine’s largest steel and mining group Metinvest has acquired a 50% stake in the Industrial group, which controls the country’s No. 5 biggest steelmaker Zaporizhstal, Metinvest reported in a statement.

Metinvest will also have an option to buy the remaining 50% stake in the group, the company reported without providing a timeframe for the option.

“Metinvest has entered the business of the Industrial group, which includes owning and controlling more than 50% in Zaporizhstal,” Metinvest said in the statement.

The acquisition underscores a rapid expansion of Metinvest on Ukrainian market through purchases of steel making assets.

Metinvest has earlier this year acquired Illich Metallurgy, Ukraine’s No. 2 steelmaking company.Metinvest is 71.25% owned by Rinat Akhmetov, the wealthiest Ukrainian businessman, while other shareholders include Smart-holding owner Vadym Novinskiy (23.75%) and former owner of Illich steelmaker Volodymyr Boyko (5%).

Metinvest has an annual production capacity of about 16.2 million mt of steel, or about 35% of Ukraine’s overall steel output, while the Zaporizhia-based Zaporizhstal is capable of producing about 4.35 million mt of steel.

Zaporizhstal produces high-quality metal products, such as pig-iron, steel, sheets of carbon, low-alloy, alloy and stainless steels, cold-rolled formed sections, tinplate, building materials and consumer goods. The Works is one of the basic suppliers of rolled sheets and cold-rolled formed sections for the Ukrainian machine-building industry.In January-June Zaporizhstal increased output of crude steel by 16.4% year-on-year to 1.91 million mt. The company also produced 1.59 million mt of rolled steel, up 16.7% year-on-year, while output of pig iron increased by 7.4% to 1.48 million mt.

Metinvest is a vertically integrated group that owns massive iron ore, coking coal mining, steel smelting and steel pipe producing assets.Metinvest controls Ilyich, Ukraine’s second-largest steelmaker, Azovstal, the No. 3 steelmaker, Yenakiyeve Steel Mill, the No. 7 steel producer and Makiyivka Metallurgy Plant, the No. 8 rolled steel producer. The group also owns Khartsyzsk Pipe Plant, the country’s biggest producer of large-diameter steel pipes used for natural gas pipelines.Metinvest is also the world’s No. 7 producer of iron ore and accounts for about 60% of Ukraine’s overall iron ore output.

Among overseas assets, Metinvest owns Ferriera Valsider and Metinvest Trametal plants in Italy, Spartan UK in the United Kingdom and Promet Steel AD in Bulgaria. Metinvest also owns United Coal Company, the No. 6 biggest coal mining company in the U.S. (sb/ez)




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