Ukrainian tycoon to invest in steel plants

Konstantin Zhevago, major shareholder in Poltava Ore Mining, the largest producer of iron ore in Ukraine, plans to invest $1.5 billion in construction of new metallurgical plants in Ukraine and Hungary. The project is to help Poltava Ore Mining to vertically integrate its business by establishment of its own steel mills. Dave Webster, CEO of Vorskla Steel, a Swiss registered company set up to implement the projects commented that without steel mill of its own, Poltava Ore Mining had exported most of its raw materials abroad. The new metallurgical plants would change this trend, allowing the mine to utilize more of its ore at home. The project is already named as the biggest investment in post-Soviet Ukrainian steel industry.