Russian mining and steel group Mechel has announced that it is going to sell Donetsk Electrometallurgical Plant (DEMZ) before July 31 this year in accordance with the offer received from a third party, not making public the name of the buyer. The group received the offer from the third party for the sale of DEMZ for $80 million on December 7, 2013. The sum of $20 million is to be transferred on the sales day, and the balance of $60 million is to be paid within two years from the finalization date. The buyer will compensate the seller for operational expenses incurred since January 1, 2014.
The transaction for the sale of 100 percent of shares in DEMZ presupposes the granting of the permits by antimonopoly authorities.
Donetsk, Ukraine-based DEMZ operates an electric arc furnace, a vacuum degasser, a ladle furnace and a continuous casting machine, as well as a 950/900 blooming mill. The steelmaker has an annual production capacity of over 1 million mt of liquid steel.