The implementation of the project of Russian steel producer Maxi-Group ( a 50 percent plus one share of which has been recently acquired by Novolipetsk Steel (NLMK)) for the construction of a new mini-mill in Otradnoe, Leningrad region, is now in doubt since the city's deputy council has prohibited the construction of the mill in the city. The city's deputy council voted against the implementation of the proposed project due to possible ecological problems the new mill could bring to the region.
Maxi-Group now needs to hold a public hearing to convince the population of Otradnoe of the safety of the proposed mill, in order for the project to get back on track, according to Anatoly Bertzev, deputy general manager of Maxi-Group's subsidiary Leningrad Electrometallurgical Plant. The public hearing is planned for March of the current year.
However, if opponents of the implementation of the Maxi-Group project manage to convince the deputy council of the city of Otradnoe to prohibit a public hearing on the issue, Maxi-Group will have to appeal to the local courts in order to reverse the latest decision.
According to the project, the new mini-mill will cost an investment of €300 million and will produce one million metric tons of rebar a year, using scrap as the main raw material.