Metinvest to spend USD 63 mln on Azovstal modernization

Metinvest announced yesterday in a press release that it would invest USD 63 mln to modernize Azovstal’s (UX: AZST UK) 3600 rolling mill (produces X80 and X90 class steel). Modernization is expected to result in a decrease in steel production costs by 3%. In 1H11, Azovstal increased crude steel production to 3,023 mln mt (5.3% up y-o-y), and rolled steel to 2,799 mln mt (up 7.4% y-o-y). Azovstal has an annual production capacity of 6.2 mln mt of crude steel and 4.4 mln mt of rolled steel.