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Metinvest Secures Loan for Hot Strip Mill Reconstruction at Ilyich Steel

Steel News - Published on Thu, 18 Jul 2019

Image Source: SteelGuru
Metinvest announced that it has secured a buyer credit facility of EUR 34.4 million for its subsidiary Ilyich Steel, a steelmaking plant based in Mariupol, Ukraine. The funds will be used to finance the large-scale reconstruction of Ilyich Steel’s HSM 1700. The project aims to enhance Ilyich Steel’s product mix by increasing the weight of the hot-rolled coils from an average of 15 tonnes to 27 tonnes, as well as by reducing the minimum thickness to 1.2 mm and allowing production of coils with widths ranging from 900 mm to 1600 mm. The reconstructed HSM 1700 will be able to use the larger slabs from the new continuous casting machine no. 4. The project will also improve Ilyich Steel’s hot-rolled coil quality and reduce production costs while increasing productivity (from 1.36 million tonnes to 2.5 million tonnes a year). In addition, it will maximise the re-use of existing equipment without compromising quality and minimise mill shutdown time. The total investment during the current phase of the project is expected to reach USD 110 million.

The key equipment and engineering services were procured from Primetals Technologies Austria GmbH. The remaining core equipment for the project will be sourced globally under the open-book concept based on support from Primetals Technologies Austria. This will also serve as a pilot project for the Group in applying this approach to sourcing.

This facility is covered by an export guarantee of the Republic of Austria issued by Oesterreichische Kontrollbank Aktiengesellschaft OeKB, which served as the export credit agency with reinsurance from Euler Hermes Aktiengesellschaft for the German portion of the transaction. It was granted by ODDO BHF Aktiengesellschaft, which acted as the sole lender. The interest rate on the facility, which matures in August 2028, has been set at the six-month EURIBOR plus margin.

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Posted By : Sanju Moirangthem on Thu, 18 Jul 2019
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