Ural Steel

Illustration: oren.ru

History

2022: Zagorsky Pipe Plant bought the Ural Steel Metallurgical Plant for $500 million

On February 3, 2022, Metalloinvest announced the sale of its Ural Steel metallurgical plant in the Orenburg Region to the Zagorsky Pipe Plant (ZTZ) for $500 million. It is planned to close the deal by the end of February 2022.

According to the general director of ZTZ Denis Safin, the acquisition of Ural Steel will allow the company to form a vertically integrated holding and significantly expand its capabilities to supply iron and steel products to the Russian and foreign markets.

Zagorsky Pipe Plant bought the Ural Steel Metallurgical Plant for $500 million

We will significantly expand our capabilities and go beyond the production of traditional pipe products for us. ZTZ plans to continue to develop the plant and increase the efficiency of its production, "Safin added.

According to the general director of Metalloinvest Nazim Efendiev, whose words are quoted in the press release, Metalloinvest fully focuses on the development of assets in Central Russia in order to strengthen its leadership in green metallurgy: the production of direct reduction iron and products based on it. "

As a result of the sale, Metalloinvest's production processes will completely exclude the production and use of coking coal, agglomerate and cast iron, which will reduce direct greenhouse gas emissions by 48%, according to a press release.

Metalloinvest recalled that Ural Steel has been a member of the company since 2006. The total investment of Metalloinvest in the development of the enterprise amounted to about $1.2 billion. A lot of work has been done to build and modernize production facilities and minimize the environmental impact of production. The abandonment of outdated open-hearth technology and the modernization of equipment made it possible to reduce emissions by more than a third compared to 2006, Metalloinvest said^[1]

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