Ukraine-headquartered Metinvest has announced that Dnipro Coke, a metallurgical coke producer controlled by Metinvest, has won an auction to acquire production complex of Ukraine-based PJSC Dneprovsky Iron & Steel Integrated Works (DMK) for UAH 9.17 billion ($340.59 million). The auction was held on July 26 as part of DMK’s bankruptcy proceedings and Dnipro Coke was the only participant. Dnipro Coke won the tender by offering a price significantly higher than the starting one.
The purchase of DMK’s production complex will allow Metinvest to expand its product mix by effectively replacing production of square billets, wire rod, rebar and shapes, which used to be produced at an asset located on non-controlled territory of Ukraine. The acquisition will also provide Promet Steel, a subsidiary of Metinvest in Bulgaria, with square billets for processing.
DMK also has an annual production capacity of 3.9 million mt of crude steel.