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. Last Updated: 07/27/2016

MMK May Build Plant In Turkey

YEKATERINBURG -- Magnitogorsk Iron & Steel Works, Russia's third-largest steelmaker, plans to build a 2.6 million-ton-per-year plant in Turkey with Turkish firm Atakas, Russian newspapers reported Thursday.

Magnitogorsk, also known as MMK, was not immediately available for comment.

Kommersant, quoting a source close to the deal, said the two firms planned to sign a contract by the end of May to build a cold-rolling mill and galvanizing and coating lines, which would be supplied by hot-rolled steel from MMK.

The newspaper, citing analysts, valued the potential deal at about $1 billion.

Atakas is a coal importer based in Iskenderun, a Mediterranean port city in eastern Turkey. Erol Kurtar, director of the company's commerce department, said the plan was still in the stage of consideration.

"I cannot say that this investment plan does not exist, but we prefer concentrating on our existing business now," he said.

Turkish newspaper Milliyet said the investment would be launched this September and the plant would produce flat steel for sale in the Turkish and Middle East markets.

Vedomosti cited sources close to MMK as saying investment in the project could reach $2 billion. MMK would take a stake of 50 percent plus one share in the joint venture, which could start production in 2009.