It is reported that the Ukrainian steel producer Industrial Union of Donbass (IUD) has temporarily frozen the construction of its new steel rolling plant in Armavir, located in Krasnodar, Russia, due to the weakening of its financial performance.
According to the reports, IUD is currently looking to secure funds from European banks, in order to continue the construction of its plant in Armavir, and has invited an international engineering consulting company Atkins, which is carrying out an independent capital project evaluation and is designing an international business plan for the company. The further construction of the plant depends on the evaluation in question.
IUD started the construction of its new steel rolling plant in Armavir in September 2006, and was planning to invest about $200-250 million. The plant will include a steel melting shop of 1.5 million mt annual capacity, a bar and section mill of 600,000-700,000 mt annual capacity and a wire rod mill with an annual capacity of 400,000-500,000 mt.