Mechel is going to sell Moskoks

One of the Russian most indebted metallurgic holdings Mechel has started getting dispose of non-profile assets. The broker for the sales of Moscow Coke Gas Plant is Geo Development. The starting price of the asset is $200 million. Production at the enterprise will be either stopped or moved but its land lots can be developed only with serious restrictions. They cannot be used for housing constructions but are interesting for the producers of asphalt concrete and metal constructions, and IT companies that could place their data-centers there.

Mechel-Service has chosen the agent for the sales of the property of Moskoks, Moscow Coke Gas Plant. It will be Geo Development. The CEO of the company M. Letschev says that they offer to the potential buyers the assets of Moskoks with the total starting price of $200 million. They include 2 land lots with total area of 120 ha and a complex of the buildings at an area of 100,000 sq. m within the borders of the town of Vidny, in 6 km from the Moscow Automobile Ring Road. Production from Moskoks will be moved first of all due to its high ecological danger, and, secondly, because the land is worth much more than production itself. Mechel refuses to give any explanations where it’s going to move the production from Moskoks.