Turkey-based integrated steelmaker Erdemir has denied that it is engaged in talks with Russian steelmaker Magnitogorsk Iron and Steel Works (MMK), following news reports which claimed that MMK is in talks with certain steelmakers including Erdemir.
The news reports, which raised the question of whether MMK is seeking to quit Turkey, stated that there is uncertainty regarding the purpose of the reported talks, though implying that they could concern a possible share transfer.
In February, Turkish steelmaker Tosyali was reported to be in talks for the acquisition of at least a 49 percent stake in the Turkey-based flat rolled steelmaker MMK Metalurji, part of MMK. However, neither company made any official statement regarding the claims.
MMK Metalurji, previously known as MMK-Atakas Metalurji San. Tic ve Liman Isletmeciligi A.Ş. (MMK-Atakas), was a joint venture established in 2007 by Turkish investor Atakas Sirketler Grubu and Russia-based MMK. In March 2011, MMK acquired Atakas' 50 percent stake in the joint venture for $485 million, increasing its own stake to 100 percent.
MMK Metalurji, which posted revenue of $215 million for the first quarter of the current year, operates with an annual output capacity of 2.5 million mt of crude steel, 2.3 million mt of hot rolled steel, 1 million mt of cold rolled steel, 1.2 million mt of pickled steel, 900,000 mt of galvanized steel and 400,000 mt of coated steel at its Iskenderun and Gebze plants.