OREANDA-NEWS. On December 20, 2007 in line with the decision on consolidation of the mining and metals businesses of SCM Group and Smart-Holding, Metinvest (SCM's subholding) obtained approval from Antimonopoly Committee of Ukraine to concentrate over 50% of shares in ZAO Makeyevka Steel Plant (Makeyevka, Donetsk oblast). Upon receipt of all necessary approvals and clearances 90% of shares will be transferred to Metinvest Group, reported the press-centre of SCM.

According to Igor Syry, Metinvest's CEO, the transfer of the shareholding will be completed in Q1 2008. Mr. Syry stated that Metinvest has proceeded to elaboration of a development plan for the plant as a part of Metinvest vertically integrated structure.

Information for journalists
Metinvest Group is the regional leader in mining and metals sector and one of the key players at world’s iron and steel market. The companies of the Group produce 10.5 million tons of steel, more than 38 million tons of iron ore raw materials both satisfying own needs and being the key supplier to other Ukrainian steelmaking companies.

Metinvest Holding is the managing company of Metinvest Group. The owners of the managing company are Metinvest B.V. (Netherlands) with 51,15% of share capital and ZAO SCM with 48,85%. Metinvest B.V. is 75% owned by SCM (System Capital Management) Limited (Cyprus), a subsidiary of ZAO SCM, and 25% owned by Smart N.V.

ZAO System Capital Management is Ukraine's largest managing company, which owns and controls assets in the steel and energy-generating industries, as well as telecommunications, banking, insurance, media, retail, and other sectors of economy. In particular, SCM Group controls Metinvest Holding, DTEK, Farlep-Invest, Optima Telekom, SCM Finance, Syegodnya Multimedia, TRK Ukraina, Ukrainskiy Retail, etc. 90% of ZAO SCM shares are owned by businessman Rinat Akhmetov.

ZAO Smart-Holding was established in 2006 and manages a number of mining and metal businesses including Makeyevka Steel Plant (Donetsk Region, Ukraine) (before it is transferred to Metinvest), Balaklava Ore Mining (Sevastopol, Ukraine), Promet Steel (Burgas, Bulgaria) (before it is transferred to Metinvest) and Yuzhny GOK (Dnepropetrovsk region, Ukraine). Apart from the mining and metal businesses, Smart-Holding also controls assets in engineering business (Dnepropress, Kherson Shipbuilding Plant), agriculture (Vyeryes Group, Kalita Agriculture Complex, and Kalita Experimental Mixed Feed and Premix Plant), and real estate (Yudzhin LLC).

Smart N.V. (Netherlands) is a holding company of Vadim Novinskiy's business group.

ZAO Makeyevka Steel Plant specializes in production of foundry and steel-making pig iron, billets, rounds, shaped sections, wire rod, reinforcement bars. The company exports over 70% of its products to EU, CIS, North and South America, Southeast Asia and Middle East.