DMP Petrovskogo Steel Announces Plans to Upgrade Capacity
27 June 2008
Yesterday DMP Petrovskogo Steel’s (DMZP) CFO Vitaly Korniyevsky announced plans to build a new rolling mill. The company intends to sign an agreement with the Italian company Danieli. Korniyevsky also mentioned a project with Danieli to build a continuous casting machine. Eugene Cherviachenko: We believe this move is more of a replacement of DMP Petrovskogo’s mostly outdated facilities than a capacity increase. The company is likely to spend USD 200 mln in CapEx according to our estimates. There is no doubt that the upgrade is positive news, although we believe the plant still needs large investments to improve the efficiency of its pig iron and steel-making facilities (USD 400-600 mln).
