MMK takes Sberbank loan to finance new plate mill

Magnitogorsk Iron and Steel Works has signed for a Rub 12 bln (appr. $330 mln) loan to finance the construction of its new plate mill 5000.

The loan is the second the company has taken for the project from state-backed Sberbank. The first was a two-year Rub 3 bln ($100 mln) credit facility secured at the end of December.

Plate mill 5000 will be capable of producing 1.5 mln tpy of wide plate, which will be supplied for the construction of pipes, building of ships, vessels and bridges. Sales will be targeted to the domestic and export markets.

MMK chairman Victor Rashnikov made a point of announcing last year that the company will push ahead with plans for the new mill. Commissioning is slated for this year.