Metinvest to double steel production by 2018
9 June 2008
Metinvest Holding plans to invest over USD 15 bln on modernization to double steel production by 2018, holding CEO Ihor Syry said on Friday. Azovstal (AZST: BUY) will likely see investments of USD ~5 bln; Makiyivka Steel USD ~6 mln, Enakievo Steel (ENMZ: BUY) USD ~2 bln. Metinvest also plans to spend USD ~2.3 bln on construction of a hot-rolled coil mill. According to Metinvest’s estimates, due to investments Azovstal will increase its steel production by 2018 to 8 mln mt (+21%, vs. 2007); Makiyivka Steel to 8 mln mt (+444%); Enakievo Steel to 4 mln mt (+29%). In 2007, the companies’ aggregate steel production totaled 10.9 mln mt. In related news, Metinvest CFO Serhiy Novikov said that the holding is in the process of attracting a one-year USD 625 mln bridge loan.
