EVRAZ GROUP S.A. announces withdrawal from Chiatura privatisation
Evraz Group S.A., one of the leading steel production and mining businesses with operations mainly in Russia, announces it has withdrawn from the acquisition of the Chiatura Manganese and the Vartsikhe Hydro Power Plant Cascade.
Following detailed due diligence, Evraz concluded it would be unable to generate returns in line with its hurdle rate for acquisitions.
The government of the Republic of Georgia has accepted Evraz’s decision and at all times acted in good faith during the negotiations and fulfilled its obligations relating to the conditions for the realization of the project.
Evraz remains focused on acquiring assets that provide the group with industrial logic, synergies with existing operations and attractive returns for shareholders.
For Further Information:
Evraz Group S.A.
Investor and Public Relations
Tel: +7 095 933 5876
Tel: +44 207 653 6620
Notes to Editors
Evraz is one of the largest vertically-integrated steel and mining businesses with operations mainly in the Russian Federation. In 2004, Evraz produced 13.7 million tonnes of crude steel.
Evraz’s principal assets include three of the leading steel plants in Russia: Nizhny Tagil (NTMK) in the Urals region, and West Siberian (Zapsib) and Novokuznetsk (NKMK) in Siberia.
Evraz Group’s fast-growing mining businesses comprise the Kachkanarsky (KGOK), Evrazruda (acquired in March 2005) and Vysokogorsky (VGOK) iron ore mining complexes and NeryungriUgol coal company and an equity interest in the Raspadskaya coal mine. The mining assets primarily supply Evraz Group’s steelmaking operations, enabling the company to be a vertically-integrated steel producer, limiting its exposure to fluctuations in the prices of key raw materials. Evraz obtained over 70% of its iron ore requirements from KGOK, Evraz Ruda and VGOK in 2004 and also obtains the majority of its coking coal from Raspadskaya and other affiliated producers.
Evraz also owns and operates the Nakhodka commercial sea port, in the Far East of Russia, which facilitates access to Asian export markets.