OREANDA-NEWS. On 05 May 2008 was announced, that In February, 2006 Severstal-metiz became the owner of 60%+1 of the shares and therefore, the principal shareholder of JSC "Dneprometiz". The next logical step was for Severstal-metiz to consolidate its holding and this agreement results in its share increasing to 95 %.

The previously announced plans for development of JSC "Dneprometiz" will continue. Within three years the group of companies "Severstal-metiz" will complete its vast investment program at the Ukrainian business. The investment includes the renovation of production equipment (specifically the cleaning line and wiredrawing shop №2) which will result in cost reduction, development of new products (steel fibers, steel mesh), optimization of ancillary processes and implementation of energy saving projects.

"Dneprometiz is an attractive business for us. It has a number of advantages in comparison with the Russian plants, such as: a lower production costs, better transport rates and favorable logistics. In the nearest future we are converting it into a modern wiredrawing facility, being able to manufacture high value added [low carbon] products, meeting the requirements of the European standards," – said Olga Naumova, the CEO of group of companies "Severstal-metiz".

More detail of the Development Program of Dneprometiz will be represented by the Severstal-metiz at the planned press conference in the middle of May 2008.