Metalloinvest to invest $6 bln in modernization

The Russian Metalloinvest Holding said it plans to invest a total of $6 billion in the modernization of its enterprises over a five to seven year period. As a part of the investment program, $750 million will be invested in 2007 alone. In addition, Metalloinvest has announced that it will complete the consolidation of its assets in 2007. As a result of the consolidation, the ownership structure will be modified. In particular, Lebedinsky GOK will own Mikhailovsky GOK, while Oskolsky Electric Metallurgical Plant (OEMK) will own Ural Steel. Furthermore, Metalloinvest's Ural Steel has announced the beginning of the construction of its new continuous billet caster. The new caster, with a total production capacity of one million metric tons of billets per year, will also produce billets of certain specifications which are currently manufactured neither in Russia nor in the CIS. The construction and installation work will take approximately 10 months.