Russia’s REMZ may have found its new owner

Wednesday, 04 March 2020 16:02:10 (GMT+3)   |   Istanbul
       

Russia-based Rostov Electrometallurgical Plant (REMZ), which has been financially troubled for a rather long period of time, may have found a new owner. The company, which earlier belonged to Vadim Varshavskiy, may be sold to “Novorossiysk rolling plant”, based in the Krasnodar region of Russia.

REMZ has been on sale for RUB 6.5 billion ($97.5 million) with only two potential buyers having registered: however, only one of them has paid the deposit fee. As a result, this company has been acknowledged as the winner according to the valid law, SteelOrbis has learned.

The company has been financially troubled for years, having a rather large debt burden. Sources estimate that REMZ, if all the ownership transition process goes without delays, will hardly be able to re-enter the global billet market quickly. Being reportedly able to produce up to 120,000 mt per month, REMZ is expected to manufacture not more than 20,000 mt as its equipment requires some serious maintenance, players say.


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