Evraz to invest $115 mln in rolling mill construction in Rostov region in 2012-13
ROSTOV-ON-DON. Aug 24 (Interfax) - Evraz plans to invest $115.2 million in the construction of the Yuzhny Rolling Mill in the Rostov region in 2012-2013, the company told Interfax.
Evraz will use its own funds to finance the project.
Investments are planned at $42 million this year and about $73.2 million next year. A portion of the funds have already been allocated to perform construction and installation work at the rolling enterprise's main building and at auxiliary infrastructure facilities. Evraz also plans to start installing equipment. It has already signed a contract for deliveries of the core equipment with Italy's Siemens VAI.
Next year, construction and installation at the enterprise will be complete, as will equipment installation. The Yuzhny Rolling Mill's is scheduled for commissioning in the third quarter of 2013.
Between the launch of the project in November 2010 and 2011, investments have rung up to a total of $42.71 million, a Evraz representative said. These monies were used to perform preparatory work.
The price tag of the Yuzhny Rolling Mill's construction is $158 million. Its capacity should come to 450,000 tonnes of hoop, 315,000 tonnes of valves and 135,000 tonnes of angle bar and channel bar a year. The project is slated to hit the break-even point in 13 years.
Evraz plc is a major vertically integrated metallurgical and mining company that includes enterprises in Russia, Ukraine, the U.S., Italy, the Czech Republic and South Africa.
