In 2010, the Russian steelmaker Magnitogorsk Iron and Steel Works (MMK) will invest over $1 billion in major constructions projects, less than in 2009 when investments amounted to $1.25 billion, MMK chairman Victor Rashnikov told journalists on Monday, March 22.
Accordingly, the investments will be directed towards the completion of MMK's previously started major projects, including the construction of its new cold rolling mill 2000 with an annual capacity of two million mt, designed mainly to supply the Russian domestic automobile, construction and household appliance industries.
The total investments in this project will amount to Ruble 46 billion (about $1.57 billion). Pre-commissioning preparations at the mill are scheduled to be started in December 2010, while its commissioning is planned for the first quarter of 2011.
The products of MMK's new cold rolling mill 2000 are expected to be in demand in two or three years' time, as neither the construction industry nor the automobile industry are indicating any signs of increased demand at the present time. Currently, MMK is operating at 80 percent of its designed capacity.