Kazakhstan Development Bank to finance construction of rolled steel plant in Kostanay

Business Materials 6 September 2012 10:50 (UTC +04:00)

Kazakhstan, Astana, Sept 6 /Trend D.Mukhtarov/

The Board of Directors of JSC Development Bank of Kazakhstan (DBK) approved investment project Evraz Caspian Steel to build a plant of rolled steel in the Kazakh city of Kostanay, the bank said.

"The agreement to open a credit line between DBK and borrowing companies was signed on August14. Bank's participation in the project worth $130.7 million is about 70 percent of the total investment. Project is being implemented jointly with the world's largest metals and mining company Evraz Group SA, the bank said on Thursday.

The plant will produce hoop (rebar) in the amount of 450 thousand tons per year

As expected, the rolled steel plant in Kostanay in Kazakhstan will be the first manufacturer of valve from raw materials. It will reduce the dependence on import of the construction industry of Kazakhstan from Russia and Ukraine. In addition, it is estimated that at least 50 percent of the finished products will be exported.

Commissioning of the plant is scheduled for the fourth quarter of 2013. The plant will create 350 new jobs.