Russian steel maker bids for Esfahan Steel

03 April 2008
Russia’s Magnitogorsk Iron & Steel Works (MMK) has made a bid for a controlling stake in Iranian steelmaker Esfahan Steel Company.

Details of the bid have not been made public. MMK is seeking to expand into the Middle East where a booming construction industry is driving demand for steel products.

Esfahan Steel is developing plans to increase annual steel billet capacity from 3.6 million tonnes from 2.2 million tonne. Expansion plans include the construction of a sintering plant and a coke plant for processing iron ore.

Iranian steel makers benefit from access to locally-sourced iron ore to provide feedstock for their production plants, protecting them for the rising cost of iron ore on the global market (MEED 27:02:08).

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