The single property complex of DMK consists of the equipment necessary for the production of metal products. The acquisition also includes the right to use land and the right to operate under licenses and permits issued by the DMK. About 9 thousand employees of DMK will be transferred to work at DKHZ.
DMK was one of the largest steel producers in Ukraine with a full cycle metallurgical production. The production capacity of the single property complex of DMK included 3.2 million tonnes of steel per year.
The purchase of the production complex of DMK will allow Metinvest to expand its product line, replacing the production of square billets, wire rod assortments, rebar and structural shapes previously produced by the enterprise located on the territory not controlled by Ukraine, as well as provide square billets for the Bulgarian company of the Promet Steel Group. DMK is one of the largest buyers of iron ore and coke from the Group in Ukraine, which gives Metinvest an additional advantage along the entire production chain.
As a reminder, in May 2021, the Antimonopoly Committee of Ukraine granted the Group permission to concentrate DMK's assets through their purchases. DMK's bankruptcy was initiated in May 2019 at the suit of one of its creditors. The total amount of debt of DMK to various companies, which was recognized by the Economic Court of the Dnipropetrovsk region, is 87 billion UAH (about 3.2 billion US dollars). As of July 26, 2021, the sale of DMK assets at auction is a prerequisite in the bankruptcy case, aimed at preventing production stoppages and liquidation of the enterprise.
This press release contains forward-looking statements that include all statements other than statements of historical fact, including without limitation any statements that are preceded, followed by or that include the words "objectives", "believes", "expects", " targeted, intends, may, will, expects, might, or similar expressions or negation. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the control of the Group, which could cause the actual results, performance or achievements of the Group to differ materially from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions about the current and future business strategies of the Group and the conditions in which it will operate in the future. These forward-looking statements relate solely to the date of this press release. The Group assumes no responsibility or obligation to circulate any updates or revise any forward-looking statements contained herein to reflect changes in its expectations regarding those statements or changes in the events, conditions or circumstances on which any of such statements are based.
