The Metinvest Group has completed the consolidation of its assets with Ilyich Steel Plant. As a result, Ilyich Steel Plant joined the Metinvest Group, and Clarendale Limited, with Vladimir Boyko being the main beneficiary, became the group's shareholder.

The participants of the consolidation process abandoned the idea of creating an individual structure comprising Ilyich Steel Plant, Ingulets GOK, Krasnodonugol, Avdeyevka Coke and Chemical Plant and Khartsyzsk Pipe Plant. The parties agreed that Ilyich Steel Plant will be a part of the Metinvest Group, and shareholders of Metinvest, in addition to the redemption of Ilyich Steel Plant shares in 2010, will issue additional shares of Metinvest B.V., a holding company of the Metinvest Group, in favour of Clarendale Limited.

Vladimir Boyko is the main beneficiary of Clarendale Limited.

The Metinvest Group shareholders have met all their commitments.

As a result of the additional issue 71.25% of Metinvest B.V. is owned by SCM, 23.75% – by SMART and 5% – by Clarendale Limited.

The Metinvest Group shareholders also agreed on a five-year investment programme amounting to over $3bn, which exceeds the announced investments by $1bn.

The investment in Ilyich Steel Plant will serve to reconstruct enterprises and modernize production, fully switch to converter steel production, increase the annual steel output up to 9m tonnes, introduce modern health and safety systems and environmental programmes.

"We have an ambitious goal – we want the salaries at our businesses to be the highest in the world. But to achieve that, we must win the world cup in production cost, the world cup in quality and the world cup in sales. This is our aspiration and our belief. Vladimir Boyko is our long-term and reliable strategic partner. We are confident that his experience and professional expertise will help to meet the goals underlying the development strategy of the Metinvest Group," noted SCM's shareholder Rinat Akhmetov.

"Metinvest has ambitious goals for the next five years – to double its steel output and become a leader of European mining and metals. I am sure that not only shareholders and employees, but the whole country will benefit from it," said Vadim Novinskiy, Chairman of the Supervisory Board of Smart Holding.