One of Russia’s largest metal makers Magnitogorsk Metallurgical Plant (MMK) plans to build a new cold-rolled steel mill for automotive applications with annual capacity of 1.5 mln tn. The media wired yesterday that the Ohio authorities will provide the metal maker with a construction site.
In addition, coking coal producer Sun Coke Energy Inc is located in Scioto County and if the construction of the steel mill begins, this company will invest $230 mln in R&D in order to ramp up annual coking coal output by 1 mln tn.
In analytics opinion, the investment appeal of the project will significantly benefit from such location, since the company’s transport costs on coking coal deliveries (feedstock required for the new plant) could be reduced. Overall, many investors are upbeat on this project, since the final product will be car sheet, a value-added product which enjoys demand on the US market and its sales will enable MMK to boost its financials as early as 2010 and therefore push up the investment appeal of its shares.
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