OREANDA-NEWS. A new stage of SCM Group’s business restructuring programme has been completed. At this stage the company has transferred ownership rights for mining and metal assets of the Group to its affiliated company USH (SCM controls 100% of the authorised capital of USH (Cyprus)). At the next, final stage of SCM’s corporate restructuring in the area of mining and metals business these corporate rights will be transferred to Metinvest Group, which is responsible for strategic management of the mining and metals business of SCM Group.

Commenting on this transfer the General Director of SCM Oleg Popov said: “Changing the business structure of the Group means stage-by-stage transfer of rights for administration and ownership of assets from SCM to the industrial holdings which control these assets. The aim of the transfer of corporate rights of individual companies within SCM is to make the business more transparent and more understandable for investors and partners and to ensure that the process of the transfer of shares from SCM to Metinvest meets all the requirements of the current legislation. We are planning to complete the process of transfer of corporate rights of mining and metal assets from SCM to Metinvest by the end of 2007”.

In particular SCM has transferred to USH 52.364% of the shares of Azovstal Steel Works, 60.97% of Khartsizsk Pipe Works shares, 35.22% of Yenakievo Steel Works shares, 60.99% of Avdeyevka Coking and Chemical Plant shares and 39.63% of shares of Severniy Iron Ore Mining and Processing Works.

“The mining and metals business is of strategic importance for SCM. We are planning to develop it by making investments of not less than $4 billion in the next 5 years”, Oleg Popov added.