NLMK.L Regulatory News (NLMK)

15 Aug 2006 07:00

OJSC Novolipetsk Steel15 August 2006 Novolipetsk Steel (NLMK) completes the acquisition of a 100% interest in VIZStal Novolipetsk Steel, NLMK (LSE: NLMK), the leading Russian steel producer, hascompleted the acquisition of 100% in VIZ Stal, the second-largest Russianelectrical steel manufacturer, for USD 550 million. As previously stated in theannouncement dated June 9th, 2006, the deal was financed in full from NLMK'sexisting cash funds. VIZ Stal will be consolidated by NLMK from the mid-August,2006. Based in Ekaterinburg, VIZ Stal is a rolling facility which specializesexclusively in electrical steels. VIZ Stal produces cold-rolled electricalsteel sheet, and has a 56% share of the Russian grain-oriented steel market andabout 11% of the world market. VIZ Stal's production capacity is approximately200,000 tonnes of electrical steel per annum. Contact: NLMKAnton Bazulev +7 495 915 1575Financial DynamicsJon Simmons +44 207 831 3113 This information is provided by RNS The company news service from the London Stock Exchange