The Russian steel producer Magnitogorsk Iron and Steel Works (MMK) has announced the signing of an agreement with a consortium of international banks, including ABN AMRO, Deutsche Bank AG and ING Wholesale Banking, to secure a €365 million loan in order to finance its plate mill 5000 construction project.
The 10-year loan will be used to finance supplies and services from SMS Demag AG, which is the main equipment supplying company for MMK's plate mill 5000 and continuous slab caster construction projects.
Commenting on the announcement, MMK chairman Mr. Viktor Rashnikov stated, "This is the largest loan in the history of our company, extended by international banks...Furthermore this agreement represents an important milestone in the implementation of MMK's largest investment project, namely, the construction of the plate mill complex. This loan will be used to finance supplies and services of SMS Demag as part of the project's implementation, bringing us closer to the moment when the mill will start turning out products so unique for Russia".