News
05.05.2008
Severstal-metiz and the group ТАS have agreed the sale of the group TAS 34.6 % share of JSC Dneprometiz to Severstal-metiz
Dnepropetrovsk (Ukraine)/Cherepovets (Russia), 5 May 2008 – Severstal-metiz today announced that it has bought a further 35% of the TAS banking and insurance group, bringing its ownership of the company up to some 95%. Severstal-metiz bought its original 60% stake in February 2006.
Dneprometiz’s previously announced development plans will continue. Severstal-metiz will complete its extensive investment program in the Ukrainian business by 2011. The investment includes the renovation of the cleaning line and wiredrawing shop №2. This will result in cost reduction, the development of new products, the optimization of ancillary processes and the implementation of energy saving projects.
“Dneprometiz is an attractive business for us. It has a number of advantages compared to Russian plants, such as: a lower production costs, better transport rates and favorable logistics. Our investment to convert it to a modern wiredrawing facility will allow us to manufacture high value added products, meeting the low carbon requirements of the European standards,” said Olga Naumova, the CEO of Severstal-metiz.
More details of the Dneprometiz development programme will be presented at a planned Severstal-metiz press conference in the middle of May 2008.
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Severstal-metiz is a group of companies producing steel products with production facilities in Russia, Ukraine and Great Britain.
Severstal-metiz market share in the Russian market (by its own estimate) is 25 %, in the Ukrainian market it is 18 %, and in the UK market it is 23 %.
In 2007 the Severstal-metiz group of companies sold more than 1 million tons of steel products, EBITDA reached 87.3 million dollars, which was 1.8 times the level achieved in 2006.
JSC Dneprometiz became part of Severstal-metiz after a partnership was agreed between the ТАS financial group and Severstal-metiz on the 17th of February, 2006. Dneprometiz is the largest plant producing steel products in the Ukraine, manufacturing 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.
The Ukrainian operation specializes in producing low-carbon products, mainly for the export market.
5 % of Dneprometiz shares belong to minority shareholders.
Financial Group ТАS was founded in January, 2001. Its businesses include JSCB TAS-Komerzbank, JSC TAS-Investbank, JSC Insurance group ТАS, JSC Insurance company TAS, and a number of industrial enterprises in metallurgical and engineering industries.
Sergey Tigipko heads the group.
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