Metalloinvest and Zagorsk Pipe Plant (ZTZ) announced that they were calling off their collaboration on the Ural Steel business after an in-depth market analysis cautioned against the viability of such a joint venture (JV).
Under the JV agreement, Metalloinvest was to strategically partner with ZTZ to develop Ural Steel once the latter acquired an equity stake in the enterprise. Metalloinvest noted in a press release that both firms were considering developing their own assets independently after moving away from this JV.
The steelmaker added that the ties between both Russian companies remain strong and that Metalloinvest has promised a long-term commitment to supply steel to ZTZ.
Ural Steel has been a part of Metalloinvest since 2006 and the company has invested close to $358mn in its development and modernization process over the past 10 years.