MMK to buy $190-mln MMK Metalurji share issue
MOSCOW. Dec 27 (Interfax) - Directors at Magnitogorsk Iron & Steel Works (MMK) on December 25 decided in favor of subscribing to a share issue by the company's Turkish subsidiary MMK Metalurji, MMK said in a statement.
The share issue will be worth $190 million and the funds will be used for general corporate purposes, MMK has told Interfax.
The board also decided to establish an executive board and its members.
MMK put the electric arc furnace and hot rolling facilities at its MMK Metalurji plant in Turkey on halt for a period of 90 days in the middle of November in order to increase economic efficiency of the plant and help achieve positive profitability of MMK's Turkish project. The plant's cold rolling mill, galvanizing and color coating lines remained operational at current high capacity levels.
MMK plans to invest $100 million in MMK Metalurji, and is holding negotiations on its sale with a number of major players, MMK Metalurji chief executive Vitaly Galkin has said.
MMK Metalurji has production facilities in Iskenderun and Istanbul with combined capacity of 2.3 million tonnes of rolled steel products per year, as well as a port with capacity to handle up to 12 million tonnes per year.