Evraz moves its industry to the Ural region

According to the Kommersant’s information, Evraz, which repeatedly postponed launch of its rolling plant Yuzhny stan in the Rostov region, can move the plant closer to its Nizhny Tagil metallurgical plant (NTMK), if it doesn’t find strategic partners. Market participants say that Evraz offers Metalloinvest, TMK-Pipes and Rostov electrometallurgical plant (REMZ) to co-invest in the project and to provide it with billets. The company has been late for the Olympic games’ construction, and it’s unprofitable to transport billets to the Rostov region from NTMK.

Evraz may phase out construction section rolling plant Yuzhny stan in the Rostov region, if it doesn’t find a strategic partner and doesn’t solve the issue of raw materials, market sources told the Kommersant. According to them, the company planned to deliver billets to the plant with capacity of 450 thousand tons of steel per year from its Petrovsky DMZ in the Ukraine, but abandoned this scheme. One of the Kommersant’s interlocutors linked this to the conflict in the Ukraine, which can complicate the delivery. Another source of the Kommersant, familiar with the situation, says that "it is not a refusal from the supplies from DMZ, but the choice between this chain and other potential suppliers depending on the market situation". Also, it’s necessary to increase investments in the project - according to the regional Ministry of Industry, 3.2 billion rubles of 5.3 billion rubles have been invested in it. According to the Ministry’s information, the plant is scheduled to be launched in mid-2015.