The Russian steel producer ESTAR Holding (ESTAR) has stated that it will invest about Ruble 8 billion ($339.6 million) in the development of its subsidiary Novosibirsk Metallurgical Works named after Kuzmin (NMZK) in the next three years.
The scope of the investment not only includes modernization of NMZK's steel production facilities, but also involves the development of the plant's infrastructure and construction of public buildings, such as shopping centers, hotels and offices. Meanwhile the investment in the modernization of the mill's steel facilities will total about Ruble 3.839 billion ($163 million).
The modernization of NMZK will proceed in three phases: during the first phase a new EAF with an annual production capacity of 700,000 metric tons of steel products will be constructed; meanwhile, during the second phase, a new plate Steckel mill will be installed and, during the third phase, NMZK will construct a pipe rolling mill for the production of 426 mm diameter steel pipes for the needs of the oil industry.