Chelyabinsk Metallurgical Plant (ChMK), a part of Russian mining and steel group Mechel, will acquire Guryevsky Metallurgical Plant (GMZ), the oldest metallurgical enterprise in the Kemerovo region, specialized in the production of rolled products and grinding balls, for RUB 555.4 million ($6.44 million) following an auction, according to local media reports.
Initially, GMZ was put up for auction in 2021 for RUB 3.7 billion following a declaration of bankruptcy in 2016. As there were no buyers for the plant, the price was gradually reduced over the years. In 2021, the price declined to RUB 2.87 billion, and to fell to RUB 1.8 billion in February 2024. Over the course of several months, the price of the asset consistently decreased. The only participant in the latest auction was ChMK. The acquisition will be funded by Mechel's own resources.