Yildirim Group acquires Mechel OAO's assets
As follows from the press service of JSC «Mechel», the Turkish
the company «Yildirim Group» plans to buy Russian concern two assets:
mining and processing plant Voskhod in Kazakhstan, and «Tikhvin
Ferroalloy plant», located in Leningrad region (Russia). The total amount of
this transaction is estimated at 425 million dollars. To complete it now
you must obtain permits from regulators in Russia and Kazakhstan
and win mutual corporate approvals of the contract.
According to Evgeny Mikhel, who served as General
Director of JSC «Mechel», the agreement was approved under a previously signed
The Board of Directors of concern «Strategy for the restructuring of the group’s assets».
Cash infusion to be received from this contract will help
to reduce the debt burden of the organization and ensure smooth
financing of priority directions of development of the group.
Recall that the «Tikhvin Ferroalloy plant» — is
the enterprise can produce up to 120 thousand tons per year high carbon
ferrochrome, which is used in the manufacture of stainless steel. As
raw materials the company uses the chrome ore concentrate produced at
Mining and processing plant Voskhod is composed of
modern mining of chrome ore and beneficiation plant for
its processing and production of chrome concentrates. At the moment proven and
confirmed by JORC standards reserves of this field are estimated at
the level of 20.3 million tons of ore.
Mechel OAO is one of the largest corporations of Russia. It
includes mining, Ferroalloy, metallurgical and
the energy businesses. The Corporation consists of producers of coal, Nickel,
iron ore, stainless steel, and rolled metal of various alloys, as
also high value-added products. A separate branch of the structure — suppliers of electric
and heat energy. Among the buyers of Mechel OAO — a known as
Russian and foreign companies.
«Yildirim Group» (Turkey) — is a diversified
industrial group that includes companies in ten different industries in many
countries of the world. The property of concern is also the company «ETI KROM
INC» — the largest manufacturer in Turkey chrome ore and high quality
ferrochrome, used in the manufacture of stainless steel. In addition, «Yildirim
Group» owns one of the oldest Swedish manufacturing plants
ferrochrome — plant «Vargon Alloys AB».