Chelyabinsk Zinc Plant Begins Shipments to the UK
OREANDA-NEWS. September 7, 2007. Chelyabinsk Zinc Plant (RTS: CHZN, LSE: CHZN), Russia’s largest producer of SHG zinc and zinc alloys, announced today that it has begun supplying zinc to the Brock Metal Company (UK). The first shipment will amount to 1,000 tonnes of metal. By the end of 2007, CZP expects to ship 6,000 tonnes of zinc to the UK. In 2008 annual shipments are expected to reach 22,000 tonnes.
CZP completed its acquisition of Brock Metal (Norton Canes, Cannock, Staffordshire, UK), the leading UK supplier of zinc and aluminum die-casting alloys, in June 2007.
"As a result, Brock Metal now has CZP as a guaranteed supplier of raw material, and our plant has a guaranteed customer,” CZP General Director Vsevolod Geikhman said. “In the future, when Brock Metal increases its production capacities, the Chelyabinsk plant will also be able to satisfy the British producer’s growing demand for raw material." Mr. Geikhman also pointed out that Brock Metal offers opportunities for further downstream integration – towards a more finished product and sales of more value-added zinc alloys.
Zinc shipments from Russia will take place directly, using containers, which will allow maintenance of the quality and appearance of the product. Container shipping also reduces transportation costs.
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