Holding company news

Annual General meeting of the shareholders of the Joint Stock Company for machine building and metallurgy Motovilikhinskiye Zavody

According to the preliminary information following decisions were made during the meeting:

1. Shareholders approved Annual report, Annual accounting reports, including Report on losses and profits of the Company.

2. Considering negative financial results of the Company in 2010 losses in amount of 175,874 thousand rubles should be paid off by means of undistributed profits of the past years.

According to the companys’ performance 2010 no dividends will be paid off.

3. Shareholders approved the Board of the Directors consisting of 9 persons and elect to the Board of Directors the following candidates:

Gorelik Evgeniy Valeryevich

Dimidyuk Nikolay Mikhailovich

Kovalev Evgeniy Aleksandrovich

Kostin Ivan Mikhailovich

Makarovets Nikolay Aleksandrovich

Medvedyuk Yuriy Stanislavovich

Oshepkov Oleg Vladimirovich

Pronin Nikolay Nikolayevich

Sarksyan Vagarshak Borisovich

4. Shareholders approved Revision committee consisting of 5 persons and to elect Revision committee following persons:

Gulyan Artur Robertovich

Dzygar Yana Germanovna

Ishakov Shamil Gabdulkhakovich

Ponomarenko Irina Nikolaevna

Fazdalova Gulnaz Mirkhaziyanovna

5. LLC “Agentstvo “Nalogi i Pravo” was approved as auditor.

6. Shareholders approved all interested-party transactions.

Evgeniy Kovalev was elected Chairman of the newly elected Board of Directors at the Board of Directors meeting held after the Annual General Shareholders Meeting

New air separation plant was put into operation in “Motovilikha”

New air separation plant was successfully tested and put into operation at Motovilikha Works.

Air separation plant is used to obtain oxygen, nitrogen and argon by separating air. These gases are used in metallurgy for manufacturing of special steel grades – stainless and electrical steels. Besides oxygen is required for other manufacturing processes, such as laser cutting.

This air separation plant was manufactured by JSC “Cryogenmash” and the project cost made up 280 million rubles. Currently the plant is undergoing the registration process by supervision bodies.

The air separation plant installed at “Motovilikha” has the highest performance in the whole Perm Krai. Blow-off capacity of the plant reaches up to 2.3 thousand m³ of gaseous oxygen per hour. Gases obtained using this plant are distinguished by their high purity.

Before purchase and installation of the plant, required gases were supplied to “Motovilikha” by other companies. New equipment will allow “Motovilikha” both to meet the demand of the company itself and to provide the gases to other consumers, e.g. oxygen can find its’ application in medicine.

Installation of the air separation plant is the final step of the technical re-equipment of metallurgical complex, started in 2006. 2008-2010 within this project new forging plant and oxygen-vacuum degassing machine were installed in Motovilikha.

Total value of the project exceeded 1.1 billion rubles.