DJ Metalloinvest announces the completion of the sale of Ural Steel to Zagorsk Pipe Plant
Metalloinvest Finance Designated Activity Company (IRSH) Metalloinvest announces the completion of the sale of Ural Steel to Zagorsk Pipe Plant 01-March-2022 / 14:46 MSK Dissemination of a Regulatory Announcement, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.
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Metalloinvest announces the completion of the sale of Ural Steel to Zagorsk Pipe Plant
Moscow, Russia - 1 March 2022 - Metalloinvest, a leading global iron ore and HBI producer and supplier, and one of the regional producers of high-quality steel, announces the completion of the sale of its 100% stake in Ural Steel JSC (based in the city of Novotroitsk, Orenburg region) to Zagorsk Pipe Plant (ZTZ), one of Russia's largest suppliers of large diameter pipes for oil and gas pipelines and steel products used in construction.
Nazim Efendiev, CEO of Management Company Metalloinvest, commented: "The deal will allow us to fully focus on our priority projects of developing direct reduced iron and steel with a low carbon footprint, allocating additional investment towards improving the quality of iron ore products, and advancing the production of oxidised quartzite."
Metalloinvest will continue to supply Ural Steel with iron ore raw materials on market terms. Export operations between Ural Steel and Metalloinvest Trading AG will also continue.
The acquisition of Ural Steel will enable ZTZ to form a vertically integrated holding company and to considerably expand its capabilities to supply pig iron and steel products to the Russian and international markets.
Denis Safin, CEO of Zagorsk Pipe Plant, said: "The acquisition of the plant is part of our strategy to build a vertically integrated holding based on strong steelmaking enterprises with significant synergy potential in management, scientific and technical development and production. The enterprises of the holding will continue to supply customers with high-quality metallurgical products, while noticeably diversifying the range of products supplied.
"Ural Steel will continue to operate as normal and fulfil all obligations to its existing Russian and international customers. We also plan to continue supporting the plant's employees and focusing on the development of Ural Steel and its personnel."
For reference:
Ural Steel has been a part of Metalloinvest since 2006. Metalloinvest's total investment into the development of the enterprise amounted to about USD 1.2 bn, with a focus on developing and modernising production facilities as well as minimising the environmental impact of production. The decommissioning of the obsolete open-hearth technology and the modernisation of equipment have reduced emissions by more than a third compared to 2006.
Since 2017, Metalloinvest has been implementing a comprehensive development programme at Ural Steel. In 2019, the reconstruction of electric arc furnaces was completed with the introduction of the innovative Flexible Modular Furnace technology. A unified integrated financial and business management system based on SAP S/4 HANA was implemented at the enterprise.
In 2021, Blast Furnaces #2 and #3, the enterprise's combined heat and power plant were modernised and a new air separation unit was built.
Ural Steel is a full-cycle steel enterprise comprising sinter and coke production, steelmaking and rolling facilities. The enterprise is Russia's leading producer of bridge steel and a leading supplier of steel products for construction, pipe production and high-quality shipbuilding steel.
In 2021, Ural Steel produced 2.4 mn tonnes of pig iron and 1.5 mn tonnes of steel.
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If you have any questions, please contact us:
Artem Lavrischev Investor Relations
E: ir@metalloinvest.com
T: +7 (495) 981-55-55, ext. 7243
Anton Troshin
Public Relations
E: pr@metalloinvest.com
T: +7 (495) 981-55-55, ext. 7629
About Metalloinvest
Metalloinvest is a leading metals and mining company with the largest proven iron ore reserves on a JORC-equivalent basis
(15.4 billion tonnes and about 150 years of reserve life). The company is the world's largest producer and supplier of merchant hot briquetted iron (HBI) products, a low-carbon raw material used to produce green steel; Metalloinvest holds a leading position in the production of pellets, iron ore concentrate and high-quality steel.
In 2021, revenue amounted to USD 10.6 bn; EBITDA - USD 5.8 bn. The company has 10+ years track record on public debt capital markets with high credit ratings: S&P (BBB-/stable), Fitch (BBB-/stable), Moody's (Baa3/stable), ?CR? (AA+(RU)/ positive).
Alisher Usmanov is the main beneficiary of the company (with a 49% stake) through Holding Company USM LLC.
Ticker (Bloomberg): METIN RU; official website: www.metalloinvest.com
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ISIN: XS0918297XXX Category Code: MSCH TIDM: IRSH Sequence No.: 146090 EQS News ID: 1291299 End of Announcement EQS News Service =------------------------------------------------------------------------------------
Image link: https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=show_t_gif&application_id=1291299&application_name=news
(END) Dow Jones Newswires
March 01, 2022 06:47 ET (11:47 GMT)
