Maxi-Group, a steel producing subsidiary of Russian steelmaker Novolipetsk Steel (NLMK), is still searching for the finance necessary for it to continue the construction of its new Ruble 32 billion (approx. $1.03 billion) mini-mill in the western Russian region of Kaluga.
Accordingly, in the fourth quarter of 2008 Maxi-Group submitted an application for finance for part of the mill's construction to state-owned VEB bank; however, the talks in question are still continuing. In addition, the company is also considering the option of securing funds from foreign banks and is currently carrying out negotiations with them.
Construction is already underway for the mini-mill in Kaluga which will have a designed annual capacity of 1.7 million mt. In 2011 Maxi-Group intends to commission its new mill with an initial capacity of one million mt of steel per year.
In line with its production network expansion projects, since 2001 Maxi-Group has been engaged in the construction of several steel mini-mills that process scrap into a range of steel products. Maxi-Mill intends in the future to build additional mills in the regions of Voronezh and Novosibirsk.