Metalloinvest, a leading global iron ore and hot briquetted iron (HBI) producer based in Russia, has announced that it has signed an agreement with Russian Zagorsky Pipe Plant (ZTZ) to sell its subsidiary JSC Ural Steel.
The transaction is expected to close in February this year.
Metalloinvest will continue to supply Ural Steel with iron ore raw materials.
“Metalloinvest is fully focused on developing assets in Central Russia to strengthen the production of direct-reduced iron and products based on it. The transaction is in line with our Qualitative Change Strategy, enabling us to improve our profitability and optimize our trade balance. Production and use of coking coal, sinter and pig iron will be completely eliminated from the company’s production processes, which will in turn reduce its direct greenhouse gas emissions by 48 percent,” Nazim Efendiev, CEO of Metalloinvest, commented.
The acquisition of Ural Steel will enable ZTZ to considerably expand its capabilities to supply iron and steel products to the Russian and foreign markets.
In 2021, Ural Steel produced 2.4 million mt of pig iron and 1.5 million mt of steel.