Metinvest became the winner of the auction for the sale of the production complex of the Dnieper Metallurgical Plant

Dnipro Coke Plant (DKHZ), part of Metinvest, an international vertically integrated group of metallurgical and mining companies (hereinafter – Metinvest or the Group) became the winner of the auction for the sale of a single property complex of Dnipro Metallurgical Plant (hereinafter – DMK “, Metro Kamenskoe) for 9,170,000,000 UAH (about 340 million US dollars). On July 26, in the ProZorro system, an auction was held with the participation of DKHZ as the sole participant. DKHZ won by immediately offering an amount significantly higher than the starting bid price. The auction was held as part of the DMK bankruptcy case.

The only property complex of DMK consists of the equipment necessary for the production of metal products. The acquisition also contains the right to use land and the right to operate under licenses and permits issued by the DMK. About 9000 employees of the State Customs Committee will be transferred to work at DKHZ.

GTK was one of the largest steel producers in Ukraine with full cycle metallurgical production. The production capacity of the single property complex of DMK contained 3,900,000 tons of steel per year.

The purchase of the production complex of the State Customs Committee will allow Metinvest to expand its product line, replacing the production of square billets, wire rod assortments, rebar and shaped steel, previously produced by an enterprise located in the territory uncontrolled by Ukraine, as well as providing square billets to the Bulgarian company of Promet Steel Group … DMK is one of the largest buyers of iron ore and coke for the Group in Ukraine, which gives Metinvest an additional advantage along the entire production chain.

As a reminder, in May 2021 the Antimonopoly Committee of Ukraine granted permission to the Group to concentrate the assets of MMC by purchasing them. DMK’s bankruptcy was initiated in May 2019 at the suit of one of its creditors. The total amount of debt of DMK to various companies, which was recognized by the Economic Court of the Dnipropetrovsk region, is UAH 87 billion (about $ 3.2 billion). As of July 26, 2021, the sale of MMC assets at auction is a prerequisite in the bankruptcy case, aimed at preventing the shutdown of production and liquidation of the enterprise.

These Press Releases are forward-looking statements that contain all statements other than statements of historical fact, including without limitation any statements that are preceded, followed by or containing the words “objectives”, “believes”, ” expects ”,“ targeted ”,“ intends ”,“ may ”,“ will ”,“ expects ”,“ could ”or similar expressions or their negations. Such forward-looking statements involve known and unknown risks, uncertainties and other significant factors beyond the control of the Group, which could cause the actual results, performance or achievements of the Group to differ materially from future results, performance or achievements that express such forward-looking statements. Such forward-looking statements are based on numerous assumptions about the current and future business strategies of the Group and the conditions in which it will operate in the future. These forward-looking statements apply only to give this Press Releases. The Group is not responsible or liable to distribute any updates or review any forward-looking statements contained in this document to reflect changes in its expectations regarding these statements or changes to the events, conditions or circumstances on which any of such statements are based.

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