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NLMK Group Closes Credit Facility, Plans Kaluga Start-up
08/19/2011 - NLMK has successfully closed a credit agreement for a total of EUR93 million with a maturity of 10 years. The facility will be used to complete the construction of the company’s Kaluga Mini-Mill.
NLMK has successfully closed a credit agreement for a total of EUR93 million with a maturity of 10 years.
The company plans to use the facility to complete the construction of its Kaluga Mini-Mill, which is part of the Group’s Long Steel Division. Included in the list of top-priority investment projects under the Russian Steel Industry Development Strategy to 2020, the Kaluga Mini-Mill project targets reduction of energy consumption, minimization of the environmental footprint, and improvement in long product quality.
Startup of the Kaluga Mini-Mill is scheduled to take place in three stages. During the first and second stages, which will take place in 2012, the EAF and rolling complexes will be put in operation, with an annual output of up to one million tonnes of liquid steel, as well as long products and profiles. The total design construction cost for stages one and two is c.RUR30 billion. Further development of production facilities, to be considered in 2012, will involve product mix expansion and increase of total annual output up to 1.55 million tonnes of rolled products.
The main Kaluga Mini-Mill facilities – the EAF Shop and Rolling Shop - are currently under construction. When the plant starts up, it will employ over 1250 employees with competitive salaries and social benefits in production and support activities.
Credit under the new agreement will be backed by Hermes, the German ECA, and SACE, the Italian ECA, with Société Générale acting as arranger and Hermes agent, and Deutsche Bank acting as arranger and SACE agent.
