MMK buys Profit

Magnitogorsk Iron & Steel Works (MMK) bought a 99.99% shareholding in ZAO Profit, Russia’s largest scrape metal recycler.

The transaction has already been approved by MMK Board of Directors. The acquired assets comprise Profit proper and a number of its daughter enterprises dealing in scrap metal recycling as well. Historically, Profit had always fully met MMK’s scrap metal needs. For one, three-quarters of 5 million tons of scrap metal used by MMK in 2008 were actually supplied by Profit.

Profit’s financial performance is now to be presented in MMK Group’s consolidated reports drawn up in accordance with the IAS. The first figures will be indicative of the company’s performance in the first half of 2009.

‘Buying a strategic raw stuff supplier is sure to build up on MMK’s resource security significantly,’ the enterprise reports.

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