Severstal-metiz and TAS have agreed the sale

Severstal-metiz and the group TAS have agreed the sale of the group TAS 34.6 % share of JSC Dneprometiz to Severstal-metiz

Severstal-metiz 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.