The affiliation with Dniprovskyi Iron and Steel Works by Metinvest is expected to be concluded by 15 August at the latest
The Metinvest Group expects to expand its product range by purchasing Dniprovskyi Iron and Steel Works (DMK) through Dniprovskyi Coke Plant, which is part of its structure, according to Metinvest’s press service.
“The purchase of the production complex of Dniprovskyi Iron and Steel Works will enable Metinvest to expand its product range by replacing production of square billets, wire rod of various gauges, rebar and long products formerly produced by an enterprise located in the non-government controlled territory, as well as to ship square billets to a Bulgarian company, part of Promet Steel,” reads the post.
Furthermore, Dniprovskyi Iron and Steel Works is one of Metinvest’s largest domestic buyers of iron ore and coke. This gives the Company an additional advantage along the entire production chain.
As GMK Center reported earlier, on 26 July, an auction for sale of DMK’s property complex was held in the ProZorro system in the framework of DMK bankruptcy proceedings. Dniprovskyi Coke Plant appeared to be the only bidder. The Company’s bid was significantly higher than the opening price, ₴9.17 billion (around $340 million).
Pursuant to the legislation in force, a contract can be awarded no earlier than 10 days and no later than 20 days after the auction, i.e. until 15 August.
Dniprovskyi Iron and Steel Works is one of the largest full-cycle steel producers in Ukraine. The production capacity of the single property complex of DMK is up to 3.9 million tons of steel per annum.
In H1 2021, Dniprovskyi Iron and Steel Works ramped up production of rolled products by 17.3% to 451.4 thousand tons, and steel by 0.3% to 1.3 million tons. Pig iron production increased by 3.1% to 1.3 million tons, whereas production of sinter ore fell by 1.5% to 2.1 million tons.