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05 May 2008
Severstal-metiz and the group "ТАS" have agreed the sale of the group "TAS" 34.6 % share of JSC "Dneprometiz" to Severstal-metiz
In February, 2006 Severstal-metiz became the owner of 60%+1 of the shares and therefore, the principal shareholder of JSC "Dneprometiz". The next logical step was for Severstal-metiz to consolidate its holding and this agreement results in its share increasing to 95 %*.
The previously announced plans for development of JSC "Dneprometiz" will continue. Within three years the group of companies "Severstal-metiz" will complete its vast investment program at the Ukrainian business. The investment includes the renovation of production equipment (specifically the cleaning line and wiredrawing shop №2) which will result in cost reduction, development of new products (steel fibers, steel mesh), optimization of ancillary processes and implementation of energy saving projects.
"Dneprometiz is an attractive business for us. It has a number of advantages in comparison with the Russian plants, such as: a lower production costs, better transport rates and favorable logistics. In the nearest future we are converting it into a modern wiredrawing facility, being able to manufacture high value added [low carbon] products, meeting the requirements of the European standards," – said Olga Naumova, the CEO of group of companies "Severstal-metiz".
More detail of the Development Program of Dneprometiz will be represented by the Severstal-metiz at the planned press conference in the middle of May 2008.
***
JSC "Dneprometiz" became part of the company Severstal-metiz after a partnership was agreed between financial group “ТАS” and Severstal-metiz on the 17th of February, 2006. This is the largest plant producing steel products in the Ukraine. Dneprometiz, manufactures wire for a variety of different applications, as well as, fasteners, nails, cotter pins, electrodes and steel meshes. In 2007 the turnover of the business increased by 27 % in comparison with 2006 to 474.866 million hryvnas whilst net profit increased by 43.3 % to 16.182 million hryvnas.
In the group of companies "Severstal-metiz" the Ukrainian operation specializes in producing low-carbon products, mainly for the export market.
*5 % of “Dneprometiz” shares belong to the minority shareholders.
Financial Group "ТАS" was founded in January, 2001. Its businesses include JSCB "TAS-Komerzbank", JSC "TAS-Investbank", JSC "Insurance group "ТАS" (previously "International insurance group"), JSC "Insurance company "TAS", and a number of industrial enterprises in metallurgical and engineering industries.
Sergey Tigipko heads the group.
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