OREANDA-NEWS. October 06, 2010. The High Commercial Court of Ukraine decided to fine ALMK and DMKD USD 67.5mn and 19.1mn, respectively, for the breach of agreement with Metinvest concerning raw materials purchase.

Millennium Capital: the news is NEGATIVE for the ALMK and DMKD, as the companies struggle to retain profitability in the face of 2009 losses and huge outstanding debt of the IUD (Industrial Union of Donbas), the parent company of both. This fine underlines the weakness of non-vertically integrated companies if they do not have their own resource base in steel business.