It is reported that a Russian steel company has confirmed what was long suspected, it will not move ahead with plans to build a steel mill in Scioto County.

Magnitogorsk Iron & Steel Works or MMK confirmed its decision to Steel Business Briefing. The company cited low steel demand.

Mr Oleg Fedonin CFO of MMK speaking on a plant tour in Russia said "It seems that very many plants worldwide are struggling. European governments are cutting costs and halting infrastructure and social projects in their efforts to battle budget deficits. Hence, orders for steel products will hardly show a dramatic growth. We do not see fit to invest into this plant at the moment."

He didn't rule out the possibility of returning to the project, but even that seems unlikely.

Mr Mark Barbash assistant director of the Ohio Department of Development said his agency will continue to pursue opportunities to develop the Scioto County site. He said MMK had not communicated its plans with Ohio officials.

MMK announced the project in 2007 fueling hopes for a part of the state starved for jobs. The company obtained the permits to begin construction, but it never broke ground and made no public comments about the plan status.

(Sourced from http://www.dispatch.com)