Krastsvetmet Acquires Engineering Firm from ThyssenKrupp in Strategic Expansion

In a notable industry move, the Krasnoyarsk Non-Ferrous Metals Plant, known as Krastsvetmet, has successfully acquired the Russian division of ThyssenKrupp Industrial Solutions (RUS), based in Dzerzhinsk, Nizhny Novgorod region. This acquisition from the German conglomerate was confirmed through an announcement on the company's website, marking a significant step in Krastsvetmet's expansion strategy.

While the financial details of the transaction remain undisclosed, Krastsvetmet's CEO, Mikhail Dyagilev, highlighted the acquisition's strategic importance. It is expected to significantly bolster Krastsvetmet's capabilities, facilitating its participation in large-scale projects, particularly with organizations focused on oil and gas processing.

This move received backing in January from a government subcommittee dedicated to overseeing foreign investments in Russia, underscoring the transaction's significance within the broader economic and strategic landscape.

The acquisition is set to notably enhance the engineering capacity of Krastsvetmet's already established industrial engineering center in Dzerzhinsk. The center, which was initiated over three years ago, will see its engineering capacity effectively doubled. TKIS (RUS) brings to the table an annual engineering output of approximately 400,000 hours and reported an average annual turnover of 800 million rubles according to the Russian Accounting Standards.

TKIS (RUS) has been operational in Dzerzhinsk since 2009, with ThyssenKrupp Industrial Solutions as its founding company and Petr Lebedev serving as the general director. For the fiscal year 2022, the company declared a profit of 13.9 million rubles, although figures for 2023 are yet to be disclosed.

Furthermore, Krastsvetmet's strategic engagement within the Nizhny Novgorod region is reinforced through a cooperation agreement signed early in 2023 with the Nizhny Novgorod Region Development Corporation. This partnership aims to foster long-term collaborative efforts, enhancing both investment and innovative activities in the area, with a particular focus on small-scale chemistry. This acquisition not only signifies Krastsvetmet's growth ambitions but also its commitment to contributing to the regional economic development and the broader engineering and manufacturing ecosystem.