It has been reported that the Ukrainian steel producer Industrial Union of Donbass (ISD) has concluded a supply agreement with Italian company Danieli for the delivery of equipment to the company's new mill in Armavir, which is located in the southwestern Russian region of Krasnodar.
The contract's estimated worth is $360-370 million and provides for the supply of two longs-producing mills with an annual capacity of 1.2 million metric tons each.
According to the Russian media reports, the first mill will be specialized in the production of sections - beam 8-40, channel 10-40 and angle 80-200 mm. Beams are anticipated to be the main product manufactured at the first mill, with an annual capacity of one million metric tons.
The second mill will produce 10-40 mm rebar, round bar, and 5.5-60 mm wire rod.
Billets for the new mill will be supplied from ISD's Ukraine-based mills. The new plant is expected to be completed by 2009-2010.
The construction of the mill in the Krasnodar region will help to satisfy the growing demand for construction materials in Russia's southern regions - growth which has been boosted by the success of the Russian Black Sea resort city of Sochi in winning its 2014 Winter Olympic bid.