Home / News / Ukraine / Rinat Akhmetov told why they decided to pay UAH 9 billion for the Dnieper steel plant

Rinat Akhmetov told why they decided to pay UAH 9 billion for the Dnieper steel plant

Ukraine / Business and Finance
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Dnipro Coke Plant, part of the Metinvest group of companies, won the auction for the sale of a single property complex of the Dnieper Metallurgical Plant for 9.17 billion hryvnia. The auction took place as part of the DMK bankruptcy case.

Rinat Akhmetov told why they decided to pay UAH 9 billion for the Dnieper steel plant

The purchase of the industrial complex Dnieper Metallurgical Plant (DMK) will allow the Dutch mining and metallurgical company Metinvest B.V. (Metinvest) Rinat Akhmetov and Vadim Novinsky to expand the product line, replacing the production of square billets, wire rod assortments, rebar and shaped rolled products, which were previously produced by the Yenakiyevo Metallurgical Plant, located in the territory not controlled by Ukraine, as well as provide square billets for the Bulgarian company Promet Steel. About this told in the press service of Metinvest after the company was announced the winner of the auction for the sale of the production complex of the Dnipro Metallurgical Plant.

DMK is one of the largest buyers of iron ore and coke from the group in Ukraine, which gives Metinvest an additional advantage along the entire production chain, the press service noted.

As a reminder, in May 2021, the Antimonopoly Committee of Ukraine granted permission to the Group to concentrate DMK assets by purchasing them. DMK's bankruptcy was initiated in May 2019 at the suit of one of its creditors. The total amount of debt of DMK to various companies, which was recognized by the Economic Court of the Dnipropetrovsk region, is 87 billion hryvnia (about 3.2 billion US dollars).

As of July 26, 2021, the sale of DMK assets at the auction became a prerequisite in the bankruptcy case of the previous owner of the ISD plant, and was aimed at preventing the shutdown of production and liquidation of the enterprise.

DMK was one of the largest steel producers in Ukraine with a full cycle metallurgical production. The production capacity of the single property complex of DMK included 3.9 million tons of steel per year.

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