Dniprospetsstal (DPST) To Invest USD 45 Mn In Modernization In 2005

The program will focus on purchasing equipment for Dniprospetsstal’s drop-hammer shop and reconstruction of steel smelting shops #2 and #3. Concorde Capital: Part of the capital expenditures will be directed into construction of new electric furnace which will cost DPST EURO 10 mn. The estimated CapEx/Output ratio (USD 90 per mt) is considerably higher than other Ukrainian investment leaders, such as ALMK (with an average investment of USD 60 per mt) and ZPST (with an average investment of USD 50/per mt). Unlike other Ukrainian steel mills, DPST focuses exclusively on high-grade specialty steel, which is the highest price segment, so we can expect relatively higher return from DPST’s per-mt investment.