Metinvest to Invest $8 Billion at Mariupol-Based Steel Works
02/08/2012 - Metinvest has announced plans to invest on average $1 billion every year through 2020 in development of its Azovstal and Iliych iron and Steel Works. The investments will help the company expand annual steel output by 35% at the two facilities.
Metinvest has announced plans to invest on average $1 billion every year through 2020 in development of its Azovstal and Iliych Iron and Steel Works.
Metinvest intends to invest around $8 billion through 2020 into the reconstruction and modernization of its two integrated steel works in Mariupol: Azovstal and Ilyich Iron and Steel Works (Ilyich Steel). The company said the investment, which is being made as part of its long-term development strategy implementation, will enable it to increase joint annual steel output at these steel plants by 35% to 16 million tonnes and reduce the amount of specific emissions down to 7 kg per tonne of crude steel.
The company will use an integrated approach to modernizing its production facilities, in which production efficiency will be improved while the facilities’ negative effect on environment will be simultaneously reduced. The strategy envisages reduction of gross emissions by 3.5 times and specific emissions per tonne of steel by 5 times.
"We are determined to provide substantial reduction of negative exposure on environment while modernizing our facilities to improve production efficiency,” said Igor Syry, Metinvest’s CEO. “This is how we are convinced any modernization shall be realized.
Till 2020 we will have invested around $8 billion into such programs at these two plants alone, that means average annual expenditures of about $1 billion", added Syry. “The measures to be realized in 2012 will have reduced emissions by 10%».
Metinvest, an international vertically integrated steel and mining company, owns 24 assets in Ukraine, Europe and the United States. The company manages each link of the production chain – from iron ore and coal mining and coke production through to semi-finished and finished steel production, including the manufacture of plate and coil, pipe rolling, shapes and bars and other value-added products.
One of the top-ten producers of carbon steel plates, Metinvest occupies 26th place among the world’s largest steel companies according to the World Steel Association (WSA). In November 2010, Metinvest completed its merger with Ilyich Iron and Steel Works, doubling the company's crude steel production capacity to more than 15 million tonnes per year.
