At a meeting in Moscow on April 6, 2004, the Board of Directors of OMZ (Uralmash-Izhora Group) appointed Evgeny Yakovlev the Company’s CEO and elected Kakha Bendookidze as the Chairman of the Board of Directors.
Management changes at OMZ are carried out within the framework of the merger of Power Machines and OMZ announced in December 2003. The Board of Directors approved the new strategy for the merged Company proposed by Mr.Yakovlev. The strategy calls for a clear focus of the combined entity on the power generation equipment business, including nuclear power plant equipment, as well as the production of large castings and forgings from specialty steels.
In addition, the strategy suggests a divestment of a number of non-core assets unrelated to the power generation business that will allow the company to finance expanded presence on the power generation market as well as acquisitions in this segment.
Power Machines and OMZ are merging as equals. The shareholders of Power Machines will receive 50% of the shares of the combined entity and 100% of the shares of Power Machines will be transferred to OMZ. On February 27 OMZ held an extraordinary shareholders’ meeting (EGM) which approved the issue of additional shares to be exchanged for shares of Power Machines. The merger is expected to be finalized by the end of 2004.