March 15, 2007 — Evraz Group S. A. (LSE: EVR) («Evraz») announces that OOO «InvestEnergoProject», which was acting in the interests of Evraz, was proclaimed the winner of the auction to acquire a stake in OAO «West Siberian Heat and Power Plant» («ZapSibTETs» or «Plant») that took place today. The 93.35% stake was aquired at the price of 5,950 million roubles (apprx. US$227 million). ZapSibTETs has a nominal capacity of 1,307.5 Gcal/hour of heat and 600 MW of electricity,
The West Siberian Heat and Power Plant was built as a substation of ZSMK (OAO «ZSMK», part of Evraz Group) that at present consumes 42% of the heat and over 25% of the electricity produced by the Plant. The technological processes of ZSMK and the Plant are closely interconnected. ZSMK supplies to the Plant coking and blast furnace gas that accounts for up to 17% of the Plant's fuel balance, takes part in the steam refrigeration, and gives it room for an ashes dump. The Plant can meet up to 85% of ZSMK's electricity requirements and fully satisfy its demand for heat.
Commenting, Alexander Frolov, Evraz's CEO, said, «The acquisition of ZapSibTETs, in addition to existing power and heat generation capacities at NTMK and NKMK, will allow us to manage steel production costs more efficiently. It will also enhance significantly the power independence of Evraz's Russian steel mills».
# # #
For further information: