The Ukrainian mining and steel producing group Metinvest has announced that it has acquired a 50 percent stake in Industrial Group's mining and metal business Zaporizhstal Integrated Iron & Steel Works. In July 2011, Metinvest acquired 50 percent of Industrial Group and was granted an option to acquire a 50 percent stake in Zaporizhstal.
As a result of the acquisition, Metinvest jointly with a group of investors has become the owner of 50.0032 percent of Zaporozhstal shares as well as shares in a number of other former Industrial Group companies in the mining and metals sector.
"Acquisition of these mining and metals assets from Industrial Group is part of our long-term development strategy, which foresees establishment of a world-class vertically integrated Metinvest which is strongly positioned at every stage of the supply chain," said Metinvest CEO Igor Syry. He added, "A key element of the strategy is to increase the production of high-quality rolled steel and high added-value products in Ukraine."
"The team of Metinvest professionals will concentrate on shipment cycle improvements, setting efficient production and sales schedules and adapting the valuable distribution practices worked out by the company over the years," stated Dmytro Nikolaenko, sales director of Metinvest.
Engin Bayraktar, general manager of Metinvest's Istanbul branch office, underlined that the Turkish market will not lose its importance as regards sales of Zaporizhstal products. "During the last three years the Turkish market annually consumed around 440,000 mt of Zaporizhstal flat products on average. We are going to keep and cherish strong business relations with Turkish customers, both traditional ones and newcomers," said Mr. Bayraktar.