Russian mining and steel producing company Evraz Group has announced that it has signed an agreement for the sale of its Russian subsidiary, the heat and power generation station Tsentralnaya TETs, located in Novokuznetsk in the Kemerovo region, to Russian company Optovaya Elektricheskaya Kompaniya.
Tsentralnaya TETs generates and sells electricity and heat to Evraz ZSMK and sells heat to the city of Novokuznetsk.
As of June 30 this year, Tsentralnaya TETs had gross assets, which are the subject of the transaction, worth US$16.4 million. In the first half of the current year, it recorded a loss before tax of US$9 million.
The disposal is in line with Evraz's plan to divesting non-core and non-performing assets.