Kolomoysky received an offer from Russia

Written by admin on September 29th, 2009

Novolipetsk Steel (NLMK, Russia) is in talks with the group Privat Igor Kolomoisky for redemption, controlled by him Alapaevskii Metallurgical Plant (Sverdlovsk region). Initiative supported by Russia's Novolipetsk Metallurgical power. We are negotiating with NLMK that they are all over and bought the plant. For them, this core assets, - said Deputy Prime Minister Anatoly Gredin Sverdlovsk region.

In the group Privat until the negotiations are not commented. In particular, the first deputy chairman of Privatbank Timur Novikov assured that the details of a possible sale of Russia's metallurgical enterprises of it are not yet known.

Russia also claims that the only stumbling block in negotiations on Alapaevsk plant today is the question of price. Ukrainian shareholders as soon as the discussion comes to prices, inflate it in two or three times, - notes Gredin.

Today, analysts estimate Alapaevskih metallurgical plant a maximumof $ 10 million Such a low price of the company due to the fact that since 2005, as we are assured the local authorities, the plant is practically not working. In addition, the company is unable to work with a high level of profitability due to outdated equipment.

However, the reluctance

Privata Alapaevskih metallurgical works to sell at the market price can be explained by the specifics of the enterprise. The plant produces ferroalloys. And this is a market that is strategic for business Privat in recent years. So, today in Ukraine the group is virtually a monopoly among manufacturers of raw materials. Group Kolomoiskiy controlled Zaporizhia and Stakhanov Ferroalloy Plant. Also Privat involved in the management of Nikopol Ferroalloy. In Russia the company, Ukrainians belong to the Romanian Ferroalloys Tulcha and Georgian Zestafoni ferroalloy plant.

According to experts, Privat go on sale Alapaevskii smelter only if NLMK will offer him a good price. The fact that the Privat will stand his ground, despite the difficult situation in the industry, indirectly indicate the talks that the Ukrainians were carried out with other Russia's metallurgical companies. Thus, Alapaevskih Steel Works Magnitogorsk Iron and Steel Works has already claimed, Severstal-groups and PNTZ. Nonetheless, the parties have not agreed on a price.

For NLMK alapaevskih plant is interesting primarily as a source of raw materials for steel production. In Novolipetsk metkombinata in ferroalloys need two subsidiaries NLMK - Maxi-Group and VIZ-Stal.

Also if Novolipetsk companies to get an agreement with Privat on price, then Russia's company will be able finally to realize his idea of creating a vertically integrated holding company with a complete production cycle.

Alapaevskih metallurgical plant specializes in the production of blast furnace ferromanganese. Production capacity - 40 thousand tons per year. The plant was shut down in 2005, while production was 13 thousand tons. In 2008 revenues were $ 363 thousand, net loss - $ 396 thousand

Privat Group acquired Alapaevskih Metallurgical Plant in 2004, the company MRKS-Holding. Initially, the factory provides two GOK, which belong to Privatu - Ordzhonikidze and Marganets.

Vitaly Ermakov

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