Saturday, September 26, 2009

Novolipetsk In Talks To Buy Ferromanganese Producer

Russian steelmaker Novolipetsk Steel is interested in the acquisition of ferromanganese producer Alapaevsk Iron and Steel Works located in the Sverdlovsk region from the Ukrainian Privat Group.

Mr Anatoliy Gredin Sverdlovsk region's minister of industry and science said "We have so many problems with foreign investors. Alapaevsk Iron and Steel Works employed more than two thousand workers before, while today it employs 70 people. The plant has been stopped. Currently, we are carrying out negotiations with NLMK in relation to their bid to acquire this enterprise."

Mr Gredin said for a year now NLMK has been conducting negotiations with the Ukrainian side for the purchase of the plant, but the talks are proceeding with great complications as the two sides cannot agree on the price. According to the calculations of experts, the maximal market price of the plant is USD 10 million.

Alapaevsk Iron and Steel Works are specialized in the production of ferromanganese in blast furnaces and have an annual production capacity of 40,000 tonnes. The plant, 100% owned by Privat Group, stopped its operations in 2005, when it produced 13,000 tonnes of ferromanganese.

Source: Steel Guru

No comments: