Sberbank will offer a credit line for 10 years to fund building and installation works and to purchase supplies of Russian and foreign equipment for the plant to be built in the Nizhny Novgorod Region's Vyksa District, the company said in a news release.
MCC (Capitalia Gruppo Bancario, Italy) will provide a 200 million euro syndicated loan with maturity of 13 years and a 4.23% annual interest rate to finance supplies of metallurgical equipment produced by Italian company Danieli.
The Vyksa Steel Works, which has been under construction since June 2005, will produce high-quality hot-rolled stock for small- and medium-diameter steel pipes. The first stage of the works, with annual capacity of 1.2 million metric tons of pipes and $600 million worth of investment, will be commissioned in late 2007.
In 2005, OMK products accounted for 17% of domestic pipe consumption, including 22% of large-diameter pipes, over 60% of railroad wheels and over 70% of automobile springs. OMK enterprises manufactured around one million tons of assorted pipes, as well as over 400,000 tons of rolled metal and 800,000 railroad wheels. The company garnered more than $2 billion in revenues in 2005.
Among the major consumers of OMK pipes are Russian and foreign companies including Gazprom, LUKOIL, Transneft, Surgutneftegaz, Rosneft, ExxonMobil and Royal Dutch/Shell. The company supplies products to 20 countries.
