Metinvest acquired Dniprovsky Iron & Steel Integrated Works (DMK) for $340mn on Jul 26 through its Dniprovsky Coke Chemical subsidiary after receiving legal clearance in May.
The assets purchased as part of the bankruptcy proceedings were those that are necessary for pig iron production and steel products.
The DMK acquisition allows Metinvest to expand its product mix and bring in-house manufacturing of billets, rods, and billets previously produced outside Ukraine. DMK will also supply Promet Steel in Bulgaria with square billet raw materials and will continue sourcing iron ore and coke from Metinvest, thereby, improving synergies in Metinvest’s integrated supply chain.
The Antimonopoly Committee of Ukraine (AMCU) gave Metinvest clearance to purchase the steel plant from the Industrial Union of Donbas (IUD) conglomerate in May 2021.
DMK produces 3.2mn mt of crude steel annually and employs approximately 9,000 in its Kamianske, Ukraine. However, the unit went bankrupt in October 2019.
After the acquisition, Metinvest has become the largest mining and metallurgical holding entity in the Ukraine owning 70pc of steel production in the country, according to media reports on Jul 27.