Metinvest to expand flats capacities

The Ukrainian iron ore and steel producing group Metinvest Holding (Metinvest) is to invest in flat steel capacity expansion projects, the group's general director Mr. Igor Syry has stated.
 
As a result of Metinvest's acquisition of Smart Group's assets and also of European plate producers, Italy's Trametal SpA and UK-based Spartan UK, in 2007, the group was able to increase its plate producing capacities up to 2.5 million metric tons (formed from about  1.4 of mmtpy of Azovstal's plate and about 1.1 mmtpy of combined capacity of Trametal, Spartan and Ferriera Valsider) . As part of its development program, Metinvest is planning to increase its plate producing capacities to 3.6 million metric tons, thus rising to third place in the world's plate market.
 
Within the scope of its program directed at flats capacity expansion, Metinvest plans to move away from production of longs at Azovstal and instead to focus fully on flats production at this facility. In addition, Metinvest plans to shut down its OHFs at Azovstal, to construct a new, third oxygen converter and to reconstruct two continuous slab casting machines. As a result, annual crude steel production at Azovstal will be increased to eight million metric tons. Moreover, the planned reconstruction of the plate rolling mill at Azovstal will increase its capacity to two million mt a year. In total, Metinvest plans to invest around $5 billion in Azovstal. 
 
Furthermore, Metinvest plans to construct a new slab producing mill at the premises of Makeevka Iron and Steel Works, with an annual production capacity of eight million mt of slabs a year. The main supplier of equipment will be Siemens VAI. The total investment in the project is estimated at $6 billion. It will take about 5.5 years to accomplish the plant's construction as soon as the final decision is undertaken.
 
Moreover, later, Metinvest plans to choose a location for a new hot rolled coil facility, with an annual production capacity of five million mt. The new HRC mill will be situated either at Makeevsk or at the premises of Bulgarian mill Promet Steel. The total investment in the project will vary at around €1.5 billion, depending on the chosen location. The new operation is expected to come on stream in 3.5 years' time after the mill's location is chosen.