OREANDA-NEWS. On August 08, 2007 as a part of the SCM business restructuring programme a 36,33% shareholding of OJSC Severniy GOK owned by SCM was transferred to Metinvest Group which controls the mining and metals assets of SCM Group, reported the press-centre of SCM.

Since 2006 when SevGOK (Severniy Iron Ore Production and Processing Works) was placed under control of Metinvest it has strengthened its position on the Ukrainian market of iron ore raw material and increase production to 12 million tonnes per year (6% of the total output of iron ore concentrate in Ukraine). For the past four years Severniy GOK has achieved the highest rates of production growth among iron ore companies in the CIS countries. The successful performance of Severniy Iron Ore Production and Processing Works is based on the new development strategy which includes modernisation of equipment and introduction of modern production management procedures. Around UAH724 million (UAH1080.6 million – together with the money spent for overhaul works) has been invested in Severniy GOK in 2005/2006.

The General Director of SCM Oleg Popov said: “SCM’s development strategy is to building a strong diversified business. We are consistently implementation of our strategic reorganization plan by transfering corporate rights of SCM’s assets to our industrial holdings. Transfer of corporate rights of individual companies within SCM is aimed at making our business more transparent and understandable for investors, partners and the employees of the companies.”