OMZ divests Czech steel assets

On 28 July 2010, OAO OMZ (Uralmash-Izhora Group) (OMZ) signed an agreement to sell one of its Czech subsidiaries, Pilsen Steel, for Euro 125.6 million. The sale will allow the Company to concentrate its resources on its Russia-based specialty steel business which is mainly focused on supporting OMZ’s nuclear power plant equipment, oil and gas equipment and power generation equipment businesses.

Proceeds from the sale will be used to reduce debt as well as finance investment projects and upgrade of manufacturing facilities and equipment.