MMK exits auto industry metal center JV project in Tatarstan with Turkey's Coskunoz
MOSCOW. March 31 (Interfax) - Magnitogorsk Iron and Steel Works" (MMK) has withdrawn from its joint project with the Turkish component manufacturer Coskunoz - a metal service center for the automotive industry in the Alabuga Special Economic Zone in Yelabuga, Tatarstan, according to data from the Unified State Register of Legal Entities.
Yesterday, MMK transferred a 35% stake in SMC Alabuga LLC to its controlling shareholder, the Russian subsidiary of Coskunoz, Coskunoz Alabuga LLC, which has become the sole owner of the enterprise.
MMK declined to comment on the deal.
The metal center specializes in the production of steel blanks for automotive components. The project was created at the end of 2016, and the following year the plant's construction began. It was launched in May 2018 with the participation of representatives of MMK, Coskunoz-Alabuga LLC and the management company of the Alabuga SEZ.
The area of the enterprise exceeds 7,600 sq. m. The production capacity at start-up was up to 60,000 tonnes of steel blanks and sheets per year, with future plans to increase to 150,000 tonnes per year.
The cost of the metal center project, as reported, was about 1 billion rubles, including 350 million rubles from MMK and Coskunoz-Alabuga invested in equipment, and 670 million rubles from the Alabuga SEZ management company in the construction of plant premises for their subsequent leasing.