ZPST Announces Plans To Attract USD 150 mln In Foreign Credit In 2007

Zaporizhstal (ZPST: Susp)  plans to attract over USD 150 mln in foreign capital in 2007 through syndicated loans and export credit for the modernization of its steel making capacities. According to ZPST’s CFO Alexander Rabtsun, the company also plans to attract EUR 25 mln for the construction of four PCI (pulverized coal injection) plants that will enable ZPST to feed its blast furnaces with coal instead of natural gas. By 2014, ZPST is planning to invest a total of USD 2 bln into the complete overhaul of its steel making capacities. Citibank has already opened a credit line for Zaporizhstal of EUR 33 mln. Andriy Gostik: Zaporizhstal makes steel in inefficient gas-intensive open hearth furnaces and unlike Ukraine’s other big steel makers does not operate any BOF (basic oxygen furnaces). The main goal of its modernization is to eliminate dependency on natural gas, which calls for the replacement of its open hearth furnaces with BOF by 2014 and in the near term implies the installation of PCI.