Metinvest to increase coke self-sufficiency through acquisition

Ukraine's largest vertically-integrated mining and steel group Metinvest has announced that, amid constant interruption of raw materials supplies to its steel mills during the last six months, the company has finalized the purchase of Evraz Dneprodzerzhinskiy Coke and Chemical Plant from Russian mining and steel producing company Evraz. Metinvest had been considering this acquisition since 2012.
 
"The purchase was a part of our strategy and aimed to strengthen the company's self-sufficiency in raw materials, which became more than important considering the conditions of highly instable operation of coke enterprises of Metinvest in the territory of military conflict in eastern Ukraine. The acquisition of a 94.55 percent stake in Evraz Dneprodzerzhinskiy has been approved by the relevant authorities," a Metinvest Group representative stated. The value of the transaction is not disclosed at the moment, while the deal is under consideration of the antimonopoly committee of Ukraine.
 
During the first nine months of 2014, Metinvest produced 3.89 million mt of coke, down 16 percent year on year, 70 percent of which was used by Metinvest's own steel mills in the given period. Evraz Dneprodzerzhinskiy has an annual coke production capacity of 1 million mt and will complement coke deliveries from Avdiivka Coke and Chemistry Plant.