Byelorussian Iron and Steel Works (BMZ) plans in 2011-2015 to invest €512.7 million in the development of its production facilities, of which €250 million will be directed towards the construction of a new 800,000 mt capacity section mill, BMZ's general director Anatoly Savenok told reporters.
Accordingly, the new section mill, which is planned to be commissioned in late 2013-early 2014, is to allow BMZ to consolidate its positions in the markets for wire rod, reinforcing steel and cast billets (bloom), Mr. Savenok said.
The investment projects scheduled for implementation in 2011-2015 are to enable BMZ to boost its steel product output to 2.848 million mt - up 23.9 percent compared to 2009, or by 40.6 percent in value terms. The share of certified products of BMZ's total output is planned to reach 81 percent by the end of 2015. In addition, Mr. Savenok said that the plant also aims to increase its steel smelting capacity and by the end of 2014 to reach three million mt.
As regards the tender for the construction of the new €900 million sheet-rolling mill, Mr. Savenok said that there now remained three applicants, from Russia and Italy, though he refused to disclose the names of the companies. He also added that by October this year BMZ expects to receive investors' proposals for the implementation of the project.
Currently, BMZ operates at 100 percent capacity utilization level, with output reaching pre-crisis levels. In January-June 2010, BMZ sold 1.2 million mt of commercial steel products, of which more than 80 percent were exported. The plant's deliveries to foreign customers rose by 24.4 percent year on year. In H1 this year, BMZ secured a foothold in new markets, including in African, Middle Eastern and Asian countries.