Byelorussian Iron and Steel Works (BMZ) has failed to find a foreign investor for the construction of a new sheet-rolling mill in Belarus, Russian information agency Prime-Tass has reported, citing a company source.
Accordingly, two foreign companies, Austria-based plantmaker Siemens VAI and German industry equipment provider SMS Siemag, have submitted their applications for participation in the tender. However, both proposals failed to meet the conditions of the tender, as the companies were offering only the supply of equipment, while BMZ is looking for an investor in the construction of the plant.
Most likely, direct negotiations to find an investor will continue to be carried out. For now the tender has officially concluded without any result. In the future Belarus' Ministry of Industry will deal with the issue.
As SteelOrbis previously reported, in January this year BMZ extended the deadline for the presentation of proposals for the international tender for the construction of a new sheet-rolling mill to up to March 1, 2010. The tender was officially announced on October 1, 2009, with the original deadline set for January 4, 2010.
The new sheet-rolling mill in Belarus, with a designed annual capacity of 1.2 million mt of hot rolled sheets in coils, will have the legal status of a joint venture in terms of a joint-stock company, with the investor to hold between a 50 to 100 percent stake. The investment value is estimated at $1.2-1.3 billion.