Striving to extend cooperation with Ural Mining and Metallurgical Company, one of the leaders in the metallurgy industry, VTB has increased the single credit limit for enterprises of UMMC Holding Group to RUR 60 billion.
The limit increase will expand the Group members' access to VTB's capabilities in financing its current activities, as well as the Holding's mid-term projects aimed at production upgrade and its investment projects.
In particular, VTB is considering its participation in financing the construction of a zinc plant in the Sverdlovsk Region, as well as a cement plant and a power plant in Kemerovo. Besides, the Bank is developing some projects to finance the reconstruction of Uralelectromed's existing production facilities and purchasing equipment for the Company's coal division.
Cooperation between VTB and UMMC Holding has a long history of success. In 2006, the Bank set a RUR 15 billion documentary credit limit to the Holding's enterprises. About 70 per cent of this amount has already been used. Moreover, the parties are jointly implementing a large-scale long-term project of the Holding aimed at building Ekaterinburg-City business center. Since 2004, VTB has granted over 80 credit lines to enterprises of UMMC Holding Group totaling RUR 23 billion.
Mutually rewarding partnership between VTB and UMMC resulted in a cooperation agreement signed in November 2007. The Agreement stipulated major lines for further relationships between the parties in tackling current and strategic tasks of the Holding. Along with standard banking services, VTB tries to use a comprehensive approach offering the widest range of financial products applicable in the international practice to satisfy customer needs at all stages of growth and diversification of their activity.
UMMC is a multisectoral holding which unites assets of 47 enterprises from 11 Russian regions. UMMC is currently ranked 14th among Russia's 400 largest companies by sales volume, 3rd among Russia's non-ferrous metallurgy companies; 2nd among refined copper producers in Russia; and 2nd by extent of coal production and exports in Russia. UMMC accounts for 25% of the Russian non-ferrous rolls market, over 50% of the European copper powder market; and about 60-70% of Russian coal exports to Western and Eastern Europe.