OREANDA-NEWS. May 31, 2010. Annual General Meeting of Shareholders of Gubakha Coke decided to terminate the agreement for the transfer of functions of the Gubakha Coke sole executive body to the management company, OMK, which was the last step in the transaction for the sale of 100% of Gubakha Coke shares to Stroyservis (www.stroyservis.com). In connection with the expiry of the agreement with the management company, Dmitry Duntsev was elected to serve as Director General of Gubakha Coke, reported the press-centre of OMK.

At present and in the medium term, the OMK Group entities’ own orders can ensure utilization of as low as 15% of Gubakha Coke capacity, which was the main reason for making the decision to sell Gubakha Coke shares.

“I think that this transaction is one of those infrequent occurrences that benefit all interested parties—the buyer, seller, employees, and city residents,” said OMK Vice President Dmitry Chernyshev.” “Stroyservis will be able to create a vertical chain for processing its coking coals into total coke, utilize its facilities at full capacity, and start projects and measures to enhance production efficiency by processing coke gas. These steps will definitely benefit the company and the city. OMK, on the other hand, obtains a fair market value and will be able to channel the raised funds into its strategic development projects.”

The sale of Gubakha Coke shares is in line with the OMK development strategy. In accordance with its business strategy and principles, United Metallurgical Company strives for leading positions in the key markets while focusing its production and investment efforts on a limited number of production sites having maximum potential. In the medium term, the Company will place special emphasis on its Vyksa cluster, and namely, on such vital projects as the Casting and Rolling Complex, Mill-5000, as well as new projects aimed at developing and increasing capacity and enhancing the processing of its main products—pipes, wheels, coils, and sheet products.

Open Joint-Stock Company Gubakha Coke was established in 2000 on the base of Gubakha Coking Plant, West Urals’ oldest enterprise. It became part of United Metallurgical Company (OMK) in 2001. Over the years under OMK’s management, the entity underwent large-scale modernization and technological improvement of its production facilities—coking plant No. 2 BIS was put into operation with an annual capacity of 650 thousand tonnes of total coke, Coking plant No. 1 BIS was overhauled, and the coal preparation workshop was rehabilitated. In addition, an investment environmental project was implemented. At present, the annual capacity of this modern high-technology coke and by-product facility is 1.3 million tonnes of coke.