Magnitogorsk Metallurgical Combine Bought Scrap Metal Supplier

04.06.2009 — News

THE CHELYABINSK OBLAST.

OAO Magnitogorsk Metallurgical Combine has acquired one of Russia's largest scrap metal companies. Prior to the acquisition ZAO Profit supplied the plant with 75% of scrap metal it required.

The Profit company gathers scrap metal in 64 Russian regions and controls 16.2% of the scrap metal market. According to the expert estimates ZAO Profit's 99.99% stake should be worth no more than 50 million dollars.

The plant's representatives told RusBusinessNews that scrap metal accounts for about 30% of the raw materials used in production and the rest is iron ores.