TMK, Lhoist to invest 120 mln euro in JV to produce lime in Sverdlovsk Region
MOSCOW. May 15 (Interfax) - OJSC TMK , a major Russian pipe maker, and Belgium's Lhoist will invest a total of 120 million euro in creating facilities in Sverdlovsk Region to process limestone and produce lime and associated products in 2016, Belgian internet publication L'Echo reported on Thursday.
The project will be carried out in several stages, and investments have been figured up until 2020. As expected, the Russian-Belgian joint venture will create 170 jobs in the region.
TMK told Interfax that the company has minority stake in the Prolime JV, while Lhoist is the JV's main strategic investor. "As a shareholder and potential consumer of the enterprise's product, TMK supports the project, considering its importance for the Sverdlovsk Region. At the same time, main investments are taking place through the [project's] main investor, the company Lhoist," TMK said.
The two signed a protocol of intent in Moscow in April 2011, and the corresponding agreement in July 2011 at the International Industrial Trade Fair (Innoprom) in Yekaterinburg. At that time, planned investments were estimated at 50 million euro.
Lhoist will lead the project with a stake of 70%. TMK, the minority partner with 30%, is interested in supplies of flux lime for its steel production facilities, L'Echo said.
The first production facilities are planned to be built at the Yuzhno-Mikhailovskoye limestone deposit in Nizhneseginsky area.
Lhoist estimates that the new enterprise will reach production capacity of 560,000 tonnes of lime per year by 2020. Work on the project will begin within the coming months, and launch is expected by late 2015 or early 2016. Lhoist opened an office in Yekaterinburg in November 2013 in addition to its Moscow office, and the company has begun hiring personnel for the JV.
According to Lhoist's press secretary, Jana Marbeana, industries that are the main consumers of the company's product are widely represented in the Sverdlovsk region. This includes ferrous and non-ferrous metallurgy, as well as construction, which was a major factors in selecting a region.
The Lhoist group is one of the world's largest producers of lime, burned dolomite and unburnt products based on limestone and dolomite. These products are used to produce steel, glass, paper and construction materials, and in the chemicals industry. The group has 90 plants in 20 countries in Europe, the United States and Brazil.