OREANDA-NEWS. Holding “Metalloinvest” is holding negotiations on cooperation with the “Industrial Union of Donbass” (IUD, Ukraine).

According to AK&M, the Russian company informed that the “countries are interested in the long-term cooperation and are considering different variants of interaction”.

Some mass media informed that JSC “Gazmetall”, which consolidates the mining-metallurgical assets of the holding “Metalloinvest”, and IUD agreed on the merger and singed the Protocol of Intentions. If this transaction takes place, one of the largest companies on the metallurgical market of Russia and the CIS with annual output of 20 milli0n tons of steel and 40 million tons of iron ore concentrate will be created. The basic shareholder of the new company could be Gazmetall.

Corporation “Industrial Union of Donbass”, which structure includes more than 40 industrial companies, was based in December 1995 and is one of the largest companies of Ukraine. Its structure includes OJSC “Alchevsk Metal Works”, OJSC “Dnepropetrovsk Metal Works after Dzerzhinskiy”, OJSC “Dnepropetrovsk Pipe Works”, Metal Works Dunaferr in Hungary, Huta Stali Czestochowa in Poland and others. The general capacity of the enterprises makes more than 9 million tons a year. The basic business: manufacture of steel, rolled product, steel pipes, coke, equipment for ferrous metallurgy and coke-and-chemical industries. Other fields of activity: power, heavy mechanical engineering, construction, telecommunications, recreational business and agriculture sector. The corporation also acts as the large trader in the market of metal products and related kinds of raw material, such as coal, coke and natural gas.

Holding “Gazmetall” carries out its activity in the largest industries: mining industry and ferrous metallurgy. It unites OJSC “Lebedinsky GOK” and OJSC “Mikhailovskiy GOK”, OJSC “Oskolsky electrometallurgical plant” and OJSC “Ural Steel”. The mining-concentrating enterprises of the holding have increased manufacture of iron ore concentrate by 6,7 % - up to 38,12 million tons in 2006. The metallurgical enterprises have produced 6,29 million tons of steel against approximately 6,18 million tons in 2005. The basic shareholders of the holding are Alisher Usmanov (50 %), Vasily Anisimov (20 %) and Andrey Skoch (30 %) act.

The consolidated proceeds of the enterprises in 2005 have made 120,6 billion roubles, the net profit - 26,1 billion roubles.