We would like to depict briefly prospects and advantages of this project and propose to you participation in the project.

      Trend analysis in the international steel market shows that present market situation leaves a natural niche for Ukrainian enterprises: supplier of commercial steel billets for further re-rolling. 

      Our project is aimed to construction and commissioning of a mini-mill with annual capacity of 500,000 ton of continuous cast steel billets, size 100- 150 mm and length 6000 – 12000 mm, according to the requirements of standards and customers. Existing workshops and premises of a former Kirovograd foundry works will be reconstructed to create mini-mill.

      Existing infrastructure of the works:

      1. Our company has acquired property rights for the site (building, foundation), where mini-mill to be constructed. We have also concluded land leasing agreement with the state for 49 years, with possible buy-out of the land at our desire. The site consists of former main building of the workshop of Kirovograd foundry works, as well as additional workshops, roads and other infrastructure. Total land area is about 200,000 sq. meters.

      2. As compared to similar “ Greenfield projects”, the main advantage of our site is a need just for re-construction of existing facilities. In this case, there will be no difficulties with permissions from local authorities (including Environment Pollution Control Service).

      3. All necessary facilities / infrastructure are available, including natural gas, water, electricity, drainage. Foundations / bearing elements of the former foundry works in the existing site are preserved.

      4. We are at the final stage of getting permission / technical conditions as to the connection of mill’s facilities to the electric networks of JSC “ Kirovograd region energy supplying company” (Kirovogradoblenergo). Maximum power of connection is 70 MW.

      5. The site has been inspected / checked by specialists from engineering group of Moldova steel works, Ukrainian design institutes (Ukrgipromez, NII Electrotherm), as well as specialists of prospective general supplier – a contractor with worldwide-known name. General opinion is that the site fully ready for installation of electric steel-melting plant.

      Prospected reconstruction of the plant:

      1. Purchase of main production equipment is planned from a contractor with worldwide-known name, who carries out turnkey projects and supplies spare parts for metallurgic equipment all over the globe.

      2. Some auxiliary equipment (air separation unit, main step-down substation, compressor station) will be acquired in Ukraine, to avoid awkward certification procedures and save on cost / shipment.

      3. Construction period for the whole plant (including equipment delivery, construction works and installation / commissioning procedures) will not exceed two years, which is also guaranteed by supplier.

      4. Production capacity of electric steel-melting plant will reach 500,000 MT pa of continuously cast steel billets, with cross-section 100- 150 mm and length 6000- 12000 mm, according to requirements of standards and customers.

      5. The following technologic scheme is planned to be implemented: electric arc furnace (EAF) with capacity 55 tons – ladle furnace (LF) with capacity 55 tons – continuous cast machine (CCM) – 3 strands, radius 7 m,  and melting time will be reduced as much as possible due to intense supply of alternative energy sources (gas, oxygen, argon) into working area of EAF. Besides, technology of foamed furnace slag will be used (blowing-in of carbon materials into liquid steel)

      6. The enterprise will have highly skilled and relatively cheap workers (former collaborates of the foundry works, who are familiar with similar technologies, living in the nearby districts), as well as management of world class, with huge experience in steel- and metal business.

     Supply of raw materials to the projected plant is guaranteed by our own scrap-collecting / processing sites. Our company has 10 such sites situated in 5 regions of Ukraine. The sites are equipped with railroads, weighing devices, machines and equipment for scrap processing (presses, cranes and hoists, shearing machines etc.).

     Total volume of scrap collecting and processing equals abt. 20 000 tons, with possible increase up to 50 000 tons per month (providing that enough capital investments are put and new equipment is acquired), which covers needs for scrap of the projected plant.

      Need for investment:

     Total need for investment for establishing and launch of electric steel-melting plant, including partial reconstruction of existing faculties equals abt. 100,000,000 USD. In the below table, we present general cost articles:

1. Contract with general contractor, including:

- Scrap transportation ultilities

- EAF-55

- LF-55

- CCM – 3 strands, radius 7 m

- Cranes and hoists

- Auxiliary production equipment

- Bulk charging system

- Dedusting system

- Water treatment and water supply

- First filling

- Spare parts for 2 years of operation

- Design / supervision of erection / training of personnel

2. VAT (20%)

3. Import duty (5%)

4. Transportation of equipment (freight)

5. Transportation of equipment from port to the site

6. Construction works

7. Main step-down substation 150/35 kV

8. Air separation unit

9. Other and unpredicted expenses

10. Repayment of interest for using of loan until the moment the plant is put into operation

      Due to high investment attractiveness of the project and moderate risks, we invite prospective investors to consider an opportunity to invest money into implementation of the project described above.

      We propose interested companies to become a partner in the project and to consider an opportunity to invest money / organize financing (credit line) for the implementation of the project described above. In exchange, we offer you share in the project of electric steel-melting plant (upon agreement).

      From our side, we put into the project our own sites for collection and processing of scrap, together with all the equipment and facilities, as well as construction site 200,000 sq. meters, where the  equipment will be installed and the plant launched.

      Prospected investors are welcome with proposals!