Magnitogorskiy metallurg kombinat : MMK agreed to acquire Lysva Metallurgical Plant

Magnitogorsk Iron & Steel Works announces that it has completed a transaction to acquire 100% of the shares of Lysva Metallurgical Company (LMC Group).

LMC Group includes Lysva Metallurgical Company LLC, Lysva Metallurgical Plant CJSC and the Insajur-Autotrade-TL LLC trading company. LMC is Russia's only producer of electrogalvanised coated rolled products. Its products are used in the automobile, construction and engineering sectors. LMC produces a wide range of coated products, including next generation materials with unique consumer properties under the Steel Art brand. The company can produce 350 thousand tons of cold-rolled coated steel per year.

MMK CEO Pavel Shilyaev said: 'The acquisition of LMC will strengthen MMK by expanding our product range. In addition, the transaction will help to increase the Group's overall operational efficiency and competitiveness by increasing production volumes and sales of High Value Added (HVA) products. The transaction forms part of MMK's strategy to integrate assets that produce highly refined products.'

About MMK

MMK is one of the world's largest steel producers and a leading Russian metals company. The company's operations in Russia include a large steel-producing complex encompassing the entire production chain, from the preparation of iron ore to downstream processing of rolled steel. MMK turns out a broad range of steel products with a predominant share of high-value-added products. In 2016, the company produced 12.5 million tonnes of crude steel and 11.6 million tonnes of commercial steel products. MMK Group had sales in 2016 of USD 5,630 million and EBITDA of USD 1,956 million.

Investor Relations Department:

Andrey Serov, Head of IR

tel.: +7 (3519) 24-52-97

E-mail: serov.ae@mmk.ru

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