Metinvest to invest $500 million in asset development in 2010

Friday, 05 February 2010 17:27:53 (GMT+2)

The Ukrainian mining and steel producing company Metinvest Holding (Metinvest) plans in 2010 to invest $500 million in the development of its assets, according to media reports citing Smart Group CEO Alexey Pertin, who controls a 25 percent plus one share stake in Metinvest.

According to Mr. Pertin, the investments will be directed at boosting Metinvest's output and increasing the quality of its products, rather than pursuing new acquisitions. In addition, Metinvest is ready to consider financing its investment program via Eurobonds, but only if it attracts a "decent interest rate." Other details have not been disclosed.

According to analysts from BG Capital, the investments will have positive implications for the Metinvest-owned Azovstal and Enakievo plants, which are likely to receive the lion's share of the funds to re-launch modernization programs that had been started before the crisis but were postponed in late 2008.

According to Metinvest's strategy presented in 2008, up to 2018 the company planned to invest more than $15 billion to double its crude steel output. Currently, Metinvest produces 10.8 million mt per year.

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