Ukrainian mining and steel producing company Metinvest Group has announced it is to combine its assets with Ukrainian steelmaker Ilyich Steel Plant.
Total production capacity of the new partnership is expected to be 20 mtpa.
The partnership will include all businesses of Ilyich Steel Plant with OSC Ilyich Iron and Steel Works of Mariupol being the major asset.
Metinvest Group will join the partnership with its Ingulets Ore Mining and Processing Plant, Krasnodonugol mining group, Avdeyevka Coke and Chemical Plant, Khartsyzsk Pipe Plant as well as provide investment of US$2B to develop and modernise the Ilyich.
After completion of the merger, Metinvest Group’s share in the partnership will 75%, while 25% will remain under control of Ilyich Steel under the leadership of the plant's current CEO Vladimir Boyko.
The final format of the partnership will be determined following the completion of due diligence and receipt of approval from Ukrainian and international authorities.
"The partnership with Ilyich Plant is an important step in the realisation of our long-term strategy aimed at strengthening the Metinvest’s vertical integration and achieving the maximum increase in tha production of high-quality yet low-cost steel", said Igor Syry, CEO of Metinvest Holding.
"The merger will help to reinforce the position of the Ukrainian mining and metals industry in the global markets, which is a keystone to the growth of Ukraine's economy and higher economic security."
