The Russian steel producer Magnitogorsk Iron and Steel Works (MMK) has announced the signing of an agreement with Russia's largest bank Sberbank for a Ruble 12 billion (approx. $335.2 million) non-renewable three-year credit facility, to be used to finance the company's construction of its plate rolling mill 5000.
As SteelOrbis previously announced, on December 30, 2008, MMK secured a Ruble 3 billion (approx. $102.2 million) non-renewable two-year credit facility, also for finalizing the construction of its plate mill 5000.
The new mill, with an annual capacity of 1.5 million mt, is to produce plates of 4,800 mm width and of X120 strength characteristics for the oil and gas, shipbuilding, bridge building and machine building industries.
As a result, MMK will be able to further significantly strengthen its general operational efficiency, and to secure state-of-the-art production of high quality plates, meeting international standards and capable of successfully competing both in the domestic and export markets.
In its turn, Sberbank says it considers the credit line for MMK as another major step towards effective support of Russian strategic enterprises.