By information of Kommersant publishing house, Mechel is looking to OMK’s enterprises: Chusovsky steel ll (CMZ) and Gubakhinsky coke plant. Mechel and OMK refrain from comments. Local governments says it is unaware of Mechel interest in OMK’s assets. They say they are quite satisfied with OMK now.
Industry analysts explain interest of Mechel in CMZ by the fact that it has sufficiently lost its price recent year. “The main thing which can CMZ attract Mechel is low-alloyed reinforced bars, which constitute one third of its total production. The main asset of Mechel, Chelyabinsky steel mill, is a large supplier of alloyed steel.” – explains Oleg Petropavlovsky, analyst at BrokCreditService. In his opinion, OMK may decide to sale CMZ because of dramatic drop in production recent year – by 57% in crude steel production and 52% in finished steel production. The mill failed to return to pre-crisis level. Debt loading is estimated by Mr. Petropavlovsky in 4.8 billion rubles ($ 160 M). This is why the deal is not to exceed $ 200-280 M. Simultaneously, Mechel creditors may be against because Mechel also has a large debt.
Tuesday, March 9, 2010
Stainless
Source:
Kommersant
