Russian bank acquires Amurmetal

Archiv – Russia | Russian state bank VEB is ready to acquire 100% of Amurmetal – the only scrap consuming steelmaker in the far east of Russia – in a move intended to allow the indebted firm to retain its 6100 workers and to expand capacity. Neither party has disclosed the value of the transaction. Russia | Russian state bank VEB is ready to acquire 100% of Amurmetal – the only scrap consuming steelmaker in the far east of Russia – in a move intended to allow the indebted firm to retain its 6100 workers and to expand capacity. Neither party has disclosed the value of the transaction.
Prime Minister Vladimir Putin, who presided over the signing of the agreement, said Amurmetal’s current owners could potentially regain control of the plant from VEB should they prove financially competent. He stated: ’We do not regard this as nationalisation. It’s just the opposite: the owners have the opportunity to buy back their holding should there be favourable developments and effective work. They have all the cards in their hands.’
Based in the city of Komsomolsk-on-Amur, Amurmetal had planned to double annual steel capacity to 2 million tonnes before the global economic crisis took hold. General Director Sergei Khokhlov told Reuters in February last year that he valued the firm at no less than US$ 1 billion.
’The enterprise found itself in a difficult situation, with large debts and the need to complete a modernisation programme,’ according to VEB’s Chief Executive Vladimir Dmitriyev. ’There will be an option to buy back the shares at the same price, with a small market premium.’
In a separate statement at the end of July, Amurmetal unveiled plans to produce 90 000 tonnes of steel and 28 000 tonnes of rolled products during the month of August.