Russian firm asks VEB to fund metals plant in Lipetsk special zone

MOSCOW, Mar 25 (PRIME) -- Russia’s Metalit-Invest asked state-owned Vnesheconombank to consider providing 2.6 billion rubles for construction of a metallurgy plant in the Lipetsk special economic zone, which will produce spare parts for high-speed railroads, a spokesperson at SEZ told PRIME on Tuesday.

The business plan for construction of the plant, worth 3.108 billion rubles, has already been approved by an expert council in Russia’s Economic Development Ministry.

The spokesperson also said that Metalit-Invest is ready to finance construction of the plant from its own funds, if VEB rejects the proposal.

The capacity of the plant will amount to 20,000 tonnes of iron castings per year, and the company plans to take about 10% of the market segment. Novolipetsk Steel (NLMK) will be a major supplier of raw material to the plant.

Start of construction is scheduled for the third quarter of 2014, while the launch may take place in the fourth quarter of 2016.

(36.1663 rubles – U.S. $1)

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