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06-12-2010 2552 Views

Starting of the project of sheet rolling mill construction

On November 30th, 2010 the Third Belarusian Investment Forum was held in Frankfurt–am-Main where among other projects the project of sheet rolling mill construction in Zhlobin was started.

The Prime Minister of Belarus C.C. Sidorskij headed a solid Belarusian delegation including managers of ministries, departments, branch concerns, business unions, and leading enterprises of Belarus.

- The Investment Forum that gathered the representatives of more than 50 countries, covered all business aspects – bank sector, industrial production, ecological projects, small town development program, agriculture, alternative power system and etc., - says the General Director of BMZ A.N.-Savenok As a result of the meetings 18 different agreements were signed including “Memorandum of intention of constructing the facility of sheet production” between RUE “BMZ” and the Italian company ’’Danieli’ . The scale of this project is judged from the following fact: the share of our agreement will make up no less than 50 percents of the total amount of the concluded agreements – this is 2,2 billions US dollars.

- What is the new flat facility represented by?

- Most probably, it will be the construction of a complete cycle facility from scrap discharging in a scrap yard to hot-rolled sheet dispatch to customers . The foundation of a Belarusian and Italian joint venture is planned after all approvals are received. Thus, the project that has been spoken about during recent years, received a powerful pulse for development.

- What is it necessary to do at the preparatory stage?

- For the coordination and implementation of a business plan a joint workgroup was created which was headed by the Chief of Steel Production Development Department V. Marushkevich. The complete business plan of this project must be studied and approved of by the Bodies of State Administration of Belarus till December 25th, 2010. Then its English version will be under discussion of the international bank structures that will finance this project. The paper work required for the organization of the joint venture can take from 9 to 12 months.

It is necessary to meet a number of challenges by interested parties in a short time period between the decision-making and the beginning of the construction. BMZ is to coordinate the documents with the Ministry of Industry, the Ministry of Finance and the Ministry of Economy. In its turn Danieli is to draw up a draft contract and to obtain an Italian bank’s consent for crediting. A consulting company will be contracted for the construction business plan analysis, verification of the Contracting part financial soundness and for financing decision-making.

Erection and assembly works are planned to be carried out in not less than 30 months. Probably, the fist sheet product will be discharged in March, 2014.