Uzbek metallurgical plant signs contracts with 3 foreign companies for 453M euros

Business Materials 11 April 2019 16:28 (UTC +04:00)

Baku, Azerbaijan, April 11

By Fakhri Vakilov – Trend:

Shareholders of Uzbek Metallurgical Plant has approved the implementation of an investment project for the construction of a casting and rolling complex with specified conditions, Trend reports with reference to Uzmetkombinat.

As follows from the information, the contract was concluded with company Danieli & C. Officine Meccaniche S.P.A. (Italy) for the supply of main technological equipment, installation supervision and staff training in the amount of 70 million euros.

Moreover, a contract was signed with Danieli Germany GmbH on an interconnected transaction for the supply of main technological equipment, installation supervision and personnel training in the amount of 111 million euros.

Renaissanse Heavy Industries (Russia) has concluded a contract with the Uzbek Metallurgical Plant for the design, construction and supply of auxiliary equipment in the amount of 272 million euros.

All agreements were concluded on the terms of open prices and fees.

In total, the amount of contracts was 453 million euros.

President of Uzbekistan Shavkat Mirziyoyev launched the construction of the casting and rolling complex of the Uzbek Metallurgical Combine in August 2018.

It was assumed that the plant’s own funds in the amount of $91 million, loans of the Russian Gazprombank and the Swiss Credit Suisse for $361 million, in total $452 million will be spent on the project implementation.

The project is scheduled to be fully operational in 2020, which will allow producing an additional 1 million tons of steel sheets per year and creating more than 400 new jobs. As a result of 2021, the output of finished products at the plant is scheduled to increase to 2.1 million tons annually.

As previously reported, in 2017, the state share in Uzmetkombinat JSC was transferred into trust management of the foreign company SFI Management Group, owned by the founder and head of the Russian joint-stock company USM Holding, Alisher Usmanov.


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