Mr. Victor Rashnikov, president of the Russian steel producer Magnitogorsk Iron and Steel Works (MMK), and Mrs. Valentina Matvienko, governor of the northwestern Russian city of St. Petersburg, have signed an investment agreement for the construction by MMK of a new stamping plant and service center in the city by 2010.
Total investment in the plant will amount to Ruble 3 billion ($117 million).
"At the initial stage, up to 2010, it is expected that the plant will process a total of 125,000 metric tons of steel per year. In the future, the capacity may be expanded to 300,000 metric tons per annum. This project is in line with the strategic priorities of our company as it will allow the strengthening of our presence in the northwestern region, adding more value to our products and ensuring maximum satisfaction of the customers' needs", said Mr.Rashnikov.
The products manufactured at the new plant will be supplied to the auto sector.
Meanwhile, the products of the new service center will target the construction sector, mechanical engineering, shipbuilding and other industries in St. Petersburg and the Leningrad region.