Interfax reported that Evraz plans to invest USD 115.2 million in the construction of the Yuzhny Rolling Mill in the Rostov region in 2012-2013.

Evraz will use its own funds to finance the project.

Investments are planned at USD 42 million this year and about USD 73.2 million next year. A portion of the funds have already been allocated to perform construction and installation work at the rolling enterprise's main building and at auxiliary infrastructure facilities.

Evraz also plans to start installing equipment. It has already signed a contract for deliveries of the core equipment with Italy's Siemens VAI. Next year, construction and installation at the enterprise will be complete, as will equipment installation. The Yuzhny Rolling Mill's is scheduled for commissioning in the third quarter of 2013.

A Evraz representative said between the launch of the project in November 2010 and 2011, investments have rung up to a total of USD 42.71 million. These monies were used to perform preparatory work.

The price tag of the Yuzhny Rolling Mill's construction is USD 158 million. Its capacity should come to 450,000 tonnes of hoop, 315,000 tonnes of valves and 135,000 tonnes of angle bar and channel bar a year. The project is slated to hit the break-even point in 13 years.

Source - Evraz

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