Industrial Union of Donbass Signs Agreement On Huta Czestochowa Purchase

IUD agreed to all terms of the steel mill’s privatization and signed a purchase agreement on June 30.Concorde Capital: The Huta Czestochowa privatization is a strategic asset and will improve IUD?s access to distribution markets in the EU. Now, IUD will produce semi-finished steel products at its Ukrainian steel mills, Alchevsk Iron and Steel (ALMK: BUY) and DMK Dzerzhynskogo. The products will then be delivered by IUD to Europe, to avoid European antidumping measures, as semi-finshed products are not subject a EUR 30 tariff. The Polish steel mill was privatized for about USD 340 mln, 2.3 times more than the price proposed for the mill at a previous tender in 2004.