Chelyabinsk Zinc Plant Reaches Agreement With Alumasc Group plc

Chelyabinsk Zinc Plant and the Alumasc Group plc (LSE: ALU) reached agreement for CZP to acquire the Brock Metal business (Norton Canes, Cannock, Staffordshire), the leading UK supplier of zinc and aluminum die-casting alloys.

The transaction is worth £0.35 million plus an amount of £7.8 million which equals to the estimated working capital at the closing date. All of Brock’s existing management team and employees will transfer with the business. The acquisition is expected to be completed by the end of June.

Brock Metal is part of the Alumasc Group plc - the premium building and engineering products group. In the year to 30 June 2006, Brock’s operating profit was £0.7m on revenue of almost £40m.

Commenting on the transaction, Sergei Moiseyev, Chairman of the Board of Directors of CZP said: «We consider the acquisition of Brock Metal, a supplier of premium zinc alloys with strong UK and European presence, as an opportunity for further downstream integration – towards a more finished product and sales of more value-added zinc alloys in Europe, which will have positive impact on our profitability ratios. We are excited to welcome Brock’s highly experienced team into the Chelyabinsk Zinc Plant family, and I would like to assure all employees of the commitment of CZP to socially responsible policies and confirm that all jobs remain secure”.