UrBC, Yekaterinburg, August 22, 2018. MMK Group’s Perm Territory-based Lysva Metallurgical Plant (LMZ) made RUR 430m in net profit (calculated in accordance with the Russian Accounting Standards) in the first half of 2018, compared with RUR 275 in net loss one year earlier, MMK refers to the company’s financial report as stating.

LMZ’s revenues rose by nearly 2.4 times, up to RUR 6,798bn, its gross profit rose by 3.2 times, up to RUR 1.051bn. Sales revenues increased by 3.3 times, up to RUR 721m.

The plant’s long-term liabilities dropped from RUR 4.276bn at the start of the year down to RUR 4.17bn at the end of June. Its short-term debt rose from RUR 2.37bn up to RUR 5,837, mostly because the company’s accounts payable rose to RUR 5.148bn. The plant’s accounts receivable also rose from RUR 371.3m up to RUR 2.442bn.

Now in December 2017, Magnitogorsk Iron & Steel Works (MMK) bought a 100% stake in OOO LMK, which, in its turn, had a 100% shareholding in LMZ. The stake was purchased for RUR 614m, with adjustments for the reassignment of the plant’s debt (RUR 5.517bn at that moment). This means MMK had to spend RUR 6.131bn on buying the manufacturer of galvanized rolled metal goods with protective coatings.