Russian Ural Mining and Metallurgical Company (UMMC) has announced its intention to complete the construction of its EAF-based steel plant in the Russian industrial region of Tyumen if it obtains around Ruble 6 billion (approx. $180 million) in government and regional co-financing. UMMC is to invest Ruble 9 billion (approx. 270 million) of its own funds in the project.
"Within the next three months, we plan to complete the preparation of documents that will allow us to expect to receive state budget funds," UMMC general director Andrei Kozitsyn said.
In addition, UMMC canceled a €150 million ($197 million) order for the construction of the plant with Austrian builder Strabag, in order to reduce construction expenses in the context of the economic crisis, the company's release reads.
Currently, about 40 percent of the plant's metal constructions have been erected. By the end of April, Italian companies Danieli and SIAD are to finish the deliveries of equipment for the plant. The plant's steel making facilities will include scrap preparation equipment, an EAF, a ladle furnace, a vacuum degasser and a concaster, while its steel rolling facilities will include a bar rolling mill and a finishing line.
In 2006, UMMC estimated that it would need to invest a total of €350-380 million to bring the plant on line.
UMMC's new electric steel plant, with an annual capacity of 550,000 mt of steel, will produce rounds, hexagonals, rebar and angles.