Russia's largest steelmaker Magnitogorsk Iron & Steel Works (MMK) and Atakas Group, one of Turkey's leading mining groups, are to build their new 50:50-owned steel plant in Iskenderun, Hatay in two phases.
The first phase of the steel plant, in which a total investment of $1.4 billion is being made, will be finalized in November 2009. With the second phase planned to be completed in 2010, the new plant will have an annual production capacity of 2.5 million mt.
The new plant, which will specialize in flats production, will have an annual capacity of 2.5 million mt of HRC, one million mt of cold rolled, 900,000 mt of hot dip galvanized, and 400,000 mt of color coated. The total processing capacity of the new steel service center to be built as part of the new mill will be 800,000 mt. The mill will also have a port complex with an annual handling capacity of 10 million mt.
The total cost of the supply deal made with the Italian plantmaker Danieli for the construction of the mill is reported to be €374 million ($572.2 million).