The investments will help Metalloinvest to increase the output of iron ore by 10 million tons to 50 million tons a year or steel from 6.3 million tons to 10 million tons.
Photo: Roman Yarovitsin
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Metalloinvest Plans to Double Capitalization in 4 Years
Metalloinvest is planning to double its capitalization to $27 billion within the next four years, the company said Tuesday. The result is to be achieved by production growth rather than by possible mergers and takeovers with Severstal and Industrial Union of Donbass. Analysts agree that Metalloinvest’s internal potential is higher than chances for success in talks with partners.
The capitalization of the metallurgy holding is to grow from $15 billion to $27 billion by 2012, Maxim Gubiev, director general of Metalloinvest told Kommersant Tuesday.
The holding is going to put more than $5 billion into production to reach this goal. The investments will help Metalloinvest to increase the output of iron ore by 10 million tons to 50 million tons a year or steel from 6.3 million tons to 10 million tons. Mr. Gubiev noted that the company has already received plenty of offers from banks.
Metalloinvest is also planning to go public. The IPO is to be expected in 2008 or somewhat later, according to its director general.
Metalloinvest is Russia’s leading mining and metallurgy company where Alisher Usmanov holds 50 percent with 30 percent in hands of Andrey Skoch and 20 percent belonging to Vasily Anisimov.
Metalloinvest made it clear that the indicated growth in capitalization will depend on the development of facilities’ capacity and market forecasts. Merger and takeover deals are still a far perspective. Managers and shareholders of Metalloinvest and Severstal are holding consultations, considering ways to merge capitals. Talks on the merger with Industrial Union of Donbass are still on, though “far from the end”, Maxim Gubiev reported.
www.kommersant.com
All the Article in Russian as of June 20, 2007
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