International company Middlesex, Детальна інформація

Fahrad Moshiri, formerly with Ernst & Young and Deloitte & Touche turned up as Managing director in MiddleSex. He was mainly responsible for securing the US$300m contract with OEMK (Oskol Elektro-Metallurgical Kombinat ) and was the key in building the relationship with GAZPROM.

There many more people in the company whose personal worldwide experience has influenced the growth of the company, but it might take me hundreds of pages to describe the significant work they have for the company. I have mentioned, in my opinion, three most important and most affective people in MiddleSex. Once again, I have to say that the success of any company, specially with a case of MiddleSex, lies in its people and how these people effectively manage to bring their past experience into the company.

Steel . The flagship operation.

At the beginning of 1996, MiddleSex entered into a trading agreement with OEMK, one of the most modern and profitable steel mills in Russia, for the export of up to US$300m of steel products per annum. As trading was unfolding successfully, MiddleSex acquired a 7.9% interest in OEMK.

Additionally, its 40 % owned investment vehicle, Interfin, holds another

6.6% of OEMK, which gives MiddleSex a further 2.6% indirect interest.

In august 1996, MiddleSex acquired DRI (IOM) Ltd. whose sole asset was the exclusive rights to export 40,000 metric tons per month (±10%) of thermally passivated direct reduced iron (DRI) pellets produced by OEMK.

Direct iron reduction technology is becoming increasingly popular as it significantly improves composition, reduces impurity contents and consequently enhances steel quality. DRI pellets are used as replacement for scrap material n modern electric arc furnace steel mills. Hence, in addition to steel products, MiddleSex also controls the exports of OEMK’s

DRI pellets. DRI trading is carried out through MiddleSex’s 100% owned subsidiary, Oskmet (DRI) Limited.

In late 1996, MiddleSex acquired WolffSteel Ltd., an established international steel trading business, with a world-wide distribution network of clients.

As a result, MiddleSex currently records steel profits from three sources : OEMK export contacts, DRI exports \x6F63\x746E\x6361\x7374\x6120\x646E\x6120\x6464\x7469\x6F69\x616E\x0B6C\x6F57\x666C\x5366\x6574\x6C65\x7420\x6172\x6964\x676E\x3A20

|Company |Gross Profit (Ј’000) |

| |1996 |1997 |1998 (est) |1999 (est) |

|OEMK export |3697 |6000 |8250 |8750 |

|Oskmet (DRI) |96 |1027 |1024 |11027 |

|Wolff Steel |242 |1200 |1200 |1200 |

|Total |4035 |8227 |10,477 |10977 |

The OEMK-MiddleSex relationship extends beyond the trading agreement.

MiddleSex monitors the day to day running of the mill, the company’s management spends considerable time at the mill while two OEMK representatives monitor steel trading in London on permanent basis. In addition, OEMK has a 20 % interest in MiddleSex’s financial services arm,

Interfin. Overall, according to what I have observed, I believe that this relationship is very strong.

Due to increasing environmental concerns and the subsequent growth of the electric arc furnace (EAF) steel-making facilities, direct iron reduction technology is becoming more attractive. Originally, all DRI exports from OEMK were handled by DRI (IOM) Ltd. In August 1996 MiddleSex bought 100% of DRI Ltd. For a maximum consideration of 2.8m and inherited a ten year exclusive world wide distribution.

|DRI EXPORTS BY REGION (‘000 metric tonnes) |

|Region |1993 |1994 |1995 |1996 |1997 |1998 |

| | | | | | |(Est) |

|European |218.0 |296.7 |221.1 |161.4 |225.0 |215.0 |

|Union | | | | | | |

|CIS |- |52.1 |96.3 |68.8 |72.5 |95.0 |

|USA |5.0 |- |- |37.1 |42.5 |57.5 |

|Australia|33.0 |26.0 |0.4 |44.3 |28.5 |35.0 |

|Total |331.0 |402.1 |429.2 |367.1 |453.5 |477.5 |