Chelyabinsk Zinc Plant

Chelyabinsk Zinc Plant OJSC (ChTZ) is a non-ferrous metallurgy enterprise located in the city of Chelyabinsk. Structurally, ChTZ was part of the Zinc Division of the ChelPipe Group, from September 29, 2009 - as part of the UMMC.

Chelyabinsk Zinc Plant was commissioned on July 14, 1935. In 1993, the company was transformed into an open joint-stock company. In June 2007, CCE acquired the British company Brock Metal, a major manufacturer of zinc and aluminum alloys.

Owners and Management

The controlling stake in the plant (57.83%) through the Dutch holding company NF Holdings B.V. is owned by a consortium of the Ural Mining and Metallurgical Company (27.3% of CCE) and the Russian Copper Company (21.5%). Earlier (until September 2009), this package was owned by Arkley Capital, which manages the assets of the ChelPipe group. Since November 2006, shares of the plant have been listed on the Lodon Stock Exchange and the Russian Commodity and Raw Materials Exchange.

Activity

CCE accounts for about 2% of the world and more than 60% of Russian zinc production. ChTZ is the only one in Russia that produces only Special High Grade zinc with a purity of at least 99.995% and alloys based on it. The CZP SHG brand is registered on the London Metal Exchange, and the production capacity of the electrolysis workshop allows you to produce up to 200,000 tons of zinc per year. Cadmium, indium, sulfuric acid, zinc sulfate are also available.

The company's revenue in 2008 (IFRS) is 10 billion rubles. (in 2007 - 15.527 billion rubles.). Net loss - 3.5 billion rubles. (in 2007 net profit - 1.914 billion rubles.) Zinc production in 2008 increased by 0.6% to 166 thousand tons (in 2007 - 165 thousand tons). 51.5% of the commodity metal was sold on the Russian market.

In 2009, production decreased by 20% (to 119.9 thousand tons). The increase in the value of zinc on the London Metal Exchange (from $1,659 per ton in 2009 to $2,296 in January-February 2010), as well as the increase in production volumes in Q4 2009 allowed CCE to cover losses received in the first half of the year and reach net profit (according to the results of 2009 it is expected in the amount of 300 - 400 million rubles).