The construction process of MMK Atakaş A. Ş., a Russian-Turkish joint venture, began in the course of a solemn opening ceremony in Iskenderun, Turkey, the spokesperson for Magnitogorsk Iron & Steel Works (MMK) reports. The ceremony was attended by the Turkish Deputy Prime Minister Nazým Ekren, Russian ambassador in Turkey Vladimir Ivanovskiy, MMK Chairman Viktor Rashnikov, and Atakaş CEO R. Atakaş. Mr. Rashnikov said in his welcoming remark that the project was important for both MMK and Atakaş’s strategic plans as well as for Russian-Turkish cooperation as a whole.

MMK and Atakaş decided to set up a new metallurgical enterprise in Turkey in May 2007 and signed an agreement that entitled MMK to a share in the authorized capital of MMK ATAKAŞ METALÜRJİ SANAYİ, TİCARET VE LİMAN İŞLETMECİLİĞİ A.Ş. (MMK ATAKAŞ). The new enterprise will have premises in Istanbul and in Iskenderun (including a specially built seaport) and is expected to produce over 2.4 million tons of flat stock a year, including 2.3 million tons of hot-rolled products, 750,000 tons of cold-rolled ones, 900,000 tons of zinc-coated goods, and 400,000 tons of polymeric-coated products. The project will probably have been competed within a three-year period, which requires $1.7bn worth of investments; these are expected to pay off in six years’ time.

MMK Atakaş A. Ş signed the agreement for the delivery of all the main machinery needed both in Istanbul and Iskenderun with Danieli, the Italian firm. Danieli is to supply the enterprise with an arc furnace capable of producing 2.4 million tons of steel a year, some CC machine units, hot- and cold-rolling mills, a pickler, and two machines for zinc-coated and painted metal production.

Mr. Ranshnikov reports the construction process will be completed in August 2008, all the equipment will have been assembled by October 2008, and the maintenance center in Iskenderun will probably have been launched by the end of the year. All the production facilities in both cities will have been launched by 2010.