Metinvest to double steel production by 2018

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.