Mechel, one of the leading Russian mining and steelmaking companies, has completed the acquisition of 100 percent of Ukraine-based Donetsk Electrometallurgical Plant (DEMZ).
The acquisition valued at $537 million has been approved at Mechel's annual shareholders' meeting and by the Mechel's board of directors. The payment will be made in installments over seven years.
According to Mechel statement, with an annual capacity of over 1million mt, the plant focuses on the production of continuously-cast billets as well as rolls of specialty steels. The plant is also located close to a developed railway network and major seaports at Mariupol and Odessa.
Additionally, the plant's electric furnace smelting facilities are currently working at their full capacity producing up to 90,000 mt of steel per month. In 2011, steel production is expected to exceed 1 million mt.