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Ferrexpo IT to build Ft 75 bln rolled steel plant

Ukraine's Ferrexpo IT, one of the world's biggest makers of raw materials for steel, plans to build a Ft 75 billion (€300 million) rolled steel plant in Szabolcs-Szatmár-Bereg county in northeast Hungary, deputy-CEO Konstantin Zhevago announced during a break in negotiations in Nyíregyháza on Wednesday.

Ferrexpo plans to start building the plant in the second half of 2006 and start production by the end of 2008 or the beginning of 2009, Zhevago said. The plant will have capacity to produce 2.5 million tons of rolled steel a year, worth about €1 billion. The plant will employ 1,000 workers. Depending on the plant's performance, Ferrexpo IT could decide to invest a further €200 million in developments.
Finance Minister János Veres, who participated at the negotiations as the government's representative, said talks about the investment have been going on for a year, but have now entered the final phase, with a decision on the location for the plant expected to be reached soon. Ferrexpo will choose between four possible sites in the county, he said. Zhevago said Ferrexpo would set up a joint venture with Vorsklasteel, owned by English and Swiss investors, to build the factory.