RNS Number : 6367W
  Evraz Group S.A.
  13 June 2008
   

    


    Evraz Completes Acquisition of IPSCO Canada

    June 13, 2008 - Evraz Group S.A.(LSE: EVR) ("Evraz") today announced that it has completed its acquisition of IPSCO's Canadian plate and
pipe business ("IPSCO Canada").

    Evraz announced the acquisition of the IPSCO Tubulars business from SSAB in March 2008.  After a back-to-back transaction with OAO TMK
("TMK") that consisted of an on-sale of the acquired IPSCO's US businesses to TMK for US$1.25 billion, the total cash consideration paid by
Evraz for the assets amounted approximately to US$2.9 billion. The original amount was adjusted to include the acquisition of a cut-to
length facility in Surrey, BC, as well as certain IPSCO Canada working capital adjustment.

    In addition, Evraz expects to sell the remaining acquired US businesses of IPSCO Tubulars to TMK for approximately US$0.5 billion in
2009.  As a result of these transactions, the net cost of the acquisition for Evraz will make up US$2.4 billion.

    Former IPSCO's Canadian assets, including the Regina Steel mill as well as plate and pipe production capacities in Regina, Calgary and
Red Deer, are now part of Evraz's North American operations.

    The transaction was financed in part out of the proceeds of the recent Eurobond issue.

    ���

    For further information:

    Evraz Group
    Corporate Affairs and Investor Relations
    Alexey Ivanov
    Tel: +7 495 232 1370
    IR@evraz.com

    Evraz Group S.A. is one of the largest vertically-integrated steel and mining businesses. In 2007, Evraz Group produced 16.4 million
tonnes of crude steel. Evraz Group*s principal assets include three of the leading steel plants in Russia: Nizhny Tagil (NTMK) in the Urals
region and West Siberian (Zapsib) and Novokuznetsk (NKMK) in Siberia, as well as Palini e Bertoli in Italy, Evraz Vitkovice Steel in the
Czech Republic, Evraz Oregon Steel Mills and Claymont Steel in the USA. Its fast-growing mining businesses comprise Evrazruda, the
Kachkanarsky (KGOK) and Vysokogorsky (VGOK) iron ore mining complexes, Yuzhkuzbassugol company and an equity interest in the Raspadskaya
coal company. The mining assets enable Evraz Group to be a vertically-integrated steel producer. Evraz Group also owns and operates the
Nakhodka commercial sea port, in the Far East of Russia. Evraz vanadium operations comprise Strategic Minerals Corporation, USA, and
Highveld Steel and Vanadium Corporation, South Africa. For further information visit www.evraz.com


This information is provided by RNS
The company news service from the London Stock Exchange
 
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