United Machine Building Works and MetalloInvest set up URALMASH Corporation

13 February 2007 (08:44)

United Machine Building Works (aka OMZ (Obedinennye Mashinostroitelnye Zavody, formerly United Heavy Machinery) and MetalloInvest Management Company decided to set up a large industrial corporation that will unite UZTM (Ural Heavy Machine Building Plant), Uralmash-SpetsStal Ltd., OMZ DRO, OMZ Crane Ltd., and ORMETO-YUMZ Heavy Engineering Joint Stock Co.

After the companies, based in Yekaterinburg and Ohrsk, merge to form one business, this large enterprise will be capable of becoming the CIS’ leading metallurgical equipment producer. The joint shares of ORMETO-YUMZ and Uralmash will amount to 40% of the metallurgical machine-building market, which is going to make the company the key player on the equipment-upgrading market, as well as on that of technical maintenance and new equipment supplies for Russian metallurgical enterprises.

According to an independent expert, the share holding of Uralmashzavod (including Uralmash-SpetsStal Ltd., OMZ DRO, and OMZ Crane Ltd.) comes to $125 million, that of ORMETO-YUMZ to $100 million. The two parties are going to get a 50% share holding each when the new corporation is set up. This is going to be a joint-stock company, to be registered in Yekaterinburg and named URALMASH Russian Machine-Building Corporation.

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