29 June 2011
Metinvest Group has completed the consolidation of its assets with Ilyich Steel Plant. As a result, Ilyich Iron and Steel Works joined Metinvest Group, and Clarendale Limited, with Vladimir Boyko being the main beneficiary, became the group's shareholder.
The participants of the consolidation process abandoned the idea of creating an individual structure comprising Ilyich Iron and Steel Works, Ingulets GOK, Krasnodon Coal, Avdiivka Coke Plant and Khartsyzsk Pipe Plant. The parties agreed that Ilyich Iron and Steel Works will be a part of the Metinvest Group, and shareholders of Metinvest, in addition to the redemption of Ilyich Iron and Steel Works shares in 2010, will issue additional shares of Metinvest B.V., a holding company of the Metinvest Group, in favour of Clarendale Limited.
Vladimir Boyko is the main beneficiary of Clarendale Limited.
Metinvest Group shareholders have met all their commitments.
As a result of the additional issue 71.25% of Metinvest B.V. is owned by SCM, 23.75% – by SMART and 5% – by Clarendale Limited.
Metinvest Group shareholders also agreed on a five-year investment programme amounting to over $3bn, which exceeds the announced investments by $1bn.
The investment in Ilyich Steel will serve to reconstruct enterprises and modernize production, fully switch to converter steel production, increase the annual steel output up to 9m tonnes, introduce modern health and safety systems and environmental programmes.
"We have an ambitious goal – we want the salaries at our businesses to be the highest in the world. But to achieve that, we must win the world cup in production cost, the world cup in quality and the world cup in sales. This is our aspiration and our belief. Vladimir Boyko is our long-term and reliable strategic partner. We are confident that his experience and professional expertise will help to meet the goals underlying the development strategy of the Metinvest Group," noted SCM's shareholder Rinat Akhmetov.
"Metinvest has ambitious goals for the next five years – to double its steel output and become a leader of European mining and metals. I am sure that not only shareholders and employees, but the whole country will benefit from it," said Vadim Novinskiy, Chairman of the Supervisory Board of Smart Holding.
- Editorial notice:
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Metinvest B.V. owns corporate rights in the vertically integrated mining group of companies Metinvest consisting of 37 enterprises in Ukraine, Europe and USA and controlling each stage of production chain from mining coal and iron ore and coke production and steel production to flat, long and rolled products, large diameter pipes as well as other high value-added products. Sales network of the Metinvest Group companies covers all key global markets.
Metinvest is a vertically integrated mining group of companies that manages assets at each stage of production chain – from mining coal and iron ore and coke production to semi-finished and finished products made of steel, pipes and coils as well as other high value-added products. The Group comprises mining and metals enterprises located in Ukraine, Europe and the USA and has a sales network covering all the key global markets. The major shareholders of Metinvest are the SCM Group (71,25%) and Smart Holding (23,75%) that manage the company on the partnership principle.
Metinvest Holding is the managing company of Metinvest Group.
SCM is a professional investor and managing company of the biggest financial and industrial group in Ukraine focused on three major areas: mining and metals, power generation and distribution and finance. The company also operates in other sectors including telecommunications, media, real estate, retail, clay production, petroleum products trade, agriculture, pharmaceuticals trade, heavy engineering and transportation.
The SCM Group comprises Metinvest and DTEK, First Ukrainian International Bank and Renaissance Capital Bank, ASKA and ASKA-Life insurance companies, Vega Telecommunications Group, Ukraina Media Group and Segodnya Multimedia publishing holding, ESTA Holding (real estate), Ukrainskiy Retail (retail), UMG (clay production), Parallel (petroleum products operator), HarvEast (agriculture), Ukrainian Pharmacy Holding, Mining Machines heavy engineering holding, Portinvest transportation holding and others. SCM is 100% owned by businessman Rinat Akhmetov
Smart Holding is an investment group focused on investing in Ukraine, CIS and Europe. The Group is engaged in projects in the area of metals and mining (Metinvest), oil and gas (Regal Petroleum), production of non-metallic materials (Smart-Nerudprom), shipbuilding (Smart Maritime Group) and agricultural processing (Veres). In addition, the Group is building a deepwater port in Ochakov town and manages a range of companies in other industries. Smart Holding is beneficially owned by Vadim Novinsky.
Mariupol Ilyich Steel Plant is one of the largest Ukrainian companies with a full production cycle. The plant produces steel plates for shipbuilding industry as well as oil, gas and water pipes and gas cylinders. This is the only producer of zink-plated cold-rolled sheets in Ukraine. The plant supplies its products to over 50 countries.