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MMK Consolidates Ownership of Turkish Project
09/16/2011 - OJSC Magnitogorsk Iron and Steel Works announced the completion of its acquisition of 50% minus one share of MMK-Atakas, Turkey, allowing it to consolidate a 100% stake in the company, which has now been renamed to MMK METALÜRJİ SANAYİ TİCARET VE LİMAN İŞLETMECİLİĞİ A. Ş.
OJSC Magnitogorsk Iron and Steel Works (MMK) announced the completion of its acquisition of 50% minus one share of MMK-Atakas from the Atakas Family at a total price of USD 485 million. The acquisition allows MMK to consolidate a 100% stake in the company.
Plant construction of the Turkish metal complex began in March 2008, followed in November 2008 by commissioning of a service center in Iskenderun designed to cut hot-rolled coils, slit and cut cold-rolled coils and coated steel, and package these products. In October 2010, the company launched the cold-rolling shop at the site in Iskenderun complete with a continuous pickling line, two-stand reversing mill, continuous hot-dip galvanizing unit and a color coating line.
In March 2011, the company completed the electric arc furnace facility linked to a cast-and-roll unit. In May 2011, the company put a color coating line into operation at the production site in Istanbul, and the first coil of cold-rolled galvanized sheet was painted. In July 2011, the company launched the continuous hot dip galvanizing line at the company’s site in Istanbul, thus completing construction of the entire metal processing compound, which also operates its own sea port in Iskenderun. The port is capable of handling ships up to 100,000 dwt, significantly expanding the plant’s export capacity and its supply of raw materials for steel production.
Together, the project’s two sites in Iskenderun and Istanbul have an annual capacity of 2.3 million tonnes of rolled flats. Total investments in the project are estimated at approximately $2.1 billion.
Together, the project’s two sites in Iskenderun and Istanbul have an annual capacity of 2.3 million tonnes of rolled flats. Total investments in the project are estimated at approximately $2.1 billion.
Following the closure of the deal MMK-Atakas was renamed to MMK METALÜRJİ SANAYİ TİCARET VE LİMAN İŞLETMECİLİĞİ A. Ş. A new board of directors also was elected, including Victor Rashnikov, Chairman of the MMK Board, Boris Dubrovsky, CEO of MMK and Yuri Bodyaev, Advisor to MMK-Atakas. The new board elected Victor Rashnikov as chairman and appointed Yuri Bodyaev as CEO of MMK METALÜRJİ SANAYİ TİCARET VE LİMAN İŞLETMECİLİĞİ A. Ş.
“Consolidation of 100% of MMK Group’s Turkish project will ensure more efficient management of our Turkish facilities and help capitalize on the promising Turkish market for flat rolled products,” said Victor Rashnikov, Chairman of the MMK and MMK METALÜRJİ SANAYİ TİCARET VE LİMAN İŞLETMECİLİĞİ A. Ş. boards of directors.
“Consolidation of 100% of MMK Group’s Turkish project will ensure more efficient management of our Turkish facilities and help capitalize on the promising Turkish market for flat rolled products,” said Victor Rashnikov, Chairman of the MMK and MMK METALÜRJİ SANAYİ TİCARET VE LİMAN İŞLETMECİLİĞİ A. Ş. boards of directors.
The company expects its Turkish metal complex to reach full production capacity by the end of 2011.
MMK (OJSC Magnitogorsk Iron and Steel Works) is among the world's largest steel producers and is one of the leaders of Russia's steel industry. The company's operations in Russia include a large steel producing complex encompassing the entire production chain, from preparation of iron ore to downstream processing of rolled steel. MMK turns out a broad range of steel products with a predominant share of higher value added products. In 2010 the company produced 11.4 million tonnes of crude steel and 10.4 million tonnes of commercial steel products, and reported revenue of USD 7.719 billion, EBITDA of USD 1.606 billion, and profit of USD 232 million.
