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

GOK Voskhod.

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».