Magnitogorsk Iron and Steel Works (MMK) together with Atakas Group are planning to build a metal works in the Republic of Turkey with a capacity of 2.6 million tons of metal products per year.

The new works will specialize in the production and processing of hot and cold-rolled sheet as well as galvanized and color-coated rolled steel products.

The project site is in the industrial areas of Iskenderun and Istanbul. The project is expected to take more than  three  years to realize and has the approximate cost of $1.1 billion.

Commenting on the decision, Viktor Rashnikov, Chairman of the Board of Magnitogorsk Iron and Steel Works, said: “The dynamic and rapidly growing market of Turkey is not fully sufficient in metal production capacities and is thereby attractive to steel producers. The implementation of this project is fully in line with the strategy of MMK, which includes expansion in growing markets. The project will contribute to increasing the strength of MMK’s position on the global steel market.”

 Rejep Atakas, CEO of Atakas Group, said: “We are pleased with the opportunity to implement a joint project with a leading global steel producer such as MMK.  I am certain that the dynamic development of the Turkish economy, MMK’s long-standing expertise in steel production together with the strong position of Atakas Group on the Turkish market will ensure the success of the project.”

About MMK:

OJSC Magnitogorsk Iron and Steel Works (“MMK”) ranks the 20th among the world’s largest steel producers (Source: IISI) and is one of the largest steel producers in Russia (Source: Chermet). MMK is a major steel mill with a fully integrated production cycle, from the preparation of iron ore through to downstream processing of steel. MMK produces a broad range of steel products and has a particular focus on steel products with high added value. In 2006, MMK produced 12.5 million metric tons of crude steel and shipped 11.3 million metric tons of commercial steel products.  In 2006, net revenue in accordance with US GAAP was $6.4 billion and net income was $1.4 billion.

MMK shares are traded on the London Stock Exchange (“MMK”), RTS (“MAGN”) and MICEX (“MAGN”).

About Atakas Group:

Ataka? Group of Companies is mainly involved in activities concerning imported coals. The Group has sieving and packing facilities with an annual capacity of 2 million tons located in ?skenderun, Marmara, and Blacksea regions. The Group also owns two factories for production of pressed coals of European standards with an annual production capacity of 500.000 tons located in Payas Organized Industrial Zone and Gebze Organized Industrial Zone. Ataka? Group of Companies was also involved in production and marketing of round construction irons between 1975 and 2005, and has initiated construction works of a wharf in D?rtyol district of Hatay in 2007.