PAO Severstal, one of the world's largest vertically integrated steel and mining companies, announces that it has signed a binding agreement to sell Severstal - Balakovo Long Products Plant to OOO Abinsky Electrometallurgical Plant. The deal is valued at $ 215 million.
The deal is expected to be closed in the first half of 2019 following the receipt of appropriate regulatory approvals and a number of other conditions.
“Following the sale of the mini- At the Balakovo plant, we will focus on steel production at the company's main asset, the Cherepovets Metallurgical Plant, which will allow us to build processes within the company as efficiently as possible in order to implement the priorities of our updated strategy. In particular, today we are focused on providing customers with comprehensive solutions and increasing the share of products with high added value. At the same time, we will maintain our presence in the market of the variety at the expense of the capacities of the Cherepovets Steel Plant. The Balakovo plant became the first manufacturer of long products in the Volga Federal District and consolidated its reputation as a reliable supplier of high-quality rolled products. We are confident that the focus of the new owner in the production of long products will allow us to further reveal the potential of the enterprise, "said Alexander Shevelev, General Director of Severstal.
The Balakovo Long Products Plant is a new generation enterprise that produces demanded products for the construction industry. The modern facilities of the plant combine the smelting of high-quality steel and the production of long products on a high-speed rolling mill. The acquisition of the enterprise is fully consistent with the strategy of our company and will allow us to strengthen our position in the variety market. We welcome the professional staff of the plant and are confident that the enterprise will continue its successful development in the structure of our company, ”commented Vitaly Babenko, General Director of the Abinsk Electrometallurgical Plant.
The capacity of the Long-Range Plant - Balakovo is 1 million tons of products per year. The plant produces rebar in rods, coils and shaped profiles. The total product portfolio includes more than 40 profile sizes. In total, more than three and a half million tons of steel have been spilled since the plant was launched. Citigroup acted as the financial consultant of PJSC Severstal.
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Abinsky Electrometallurgical Plant LLC began its work in 2010, becoming the first ferrous metallurgy enterprise in the Kuban. Favorable geographical location, the use of the most modern technologies and a large range of products made it possible for the plant to become the flagship of the economy of the Southern Federal District.
