Eurasian Bank of Development and Belarusbank SB jointly finance the erection of a new rolling mill
Eurasian Bank of Development (EABD) and OSC Belarusbank SB will together finance the investment project “Organization of the production of rolled section with the construction of a small-section wire mill” at OJSC “Byelorussian Steel Works – Management Company of “Byelorussian Metallurgical Company” Holding (BSW) in the town of Zhlobin, Republic of Belarus. The bank agreement was secured in loan agreements signed today between EABD and BSW and OJSC Belarusbank SB and BSW represented by BSW general director Anatoli Savianok and deputy chairman of EABD Board Gennady Zhuzhlev and chairman of the board of OJSC Belarusbank SB Siarhei Pisaryk on July182013 in Minsk.
The amount of lending by EABD, the organizer of the project financing, is EUR141 million and will be directed to purchasing of the production equipment, and the amount of financing by OJSC Belarusbank SB is EUR142,8 million to be directed to financing of construction of the facility and local expenses. The loan facilities are granted to one of the largest enterprises of the Republic of Belarus for 10 years.
BSW project foresees erection of a rolling mill and purchasing, assembly and commissioning of modern equipment as well as building of a new production shop. At the first stage of the project implementation the capacity of the small-section mill will be 700 thou. tons of rolled products. Later on after installation of additional equipment it will be increased to 1 million tons per year.
Commissioning of the new rolling mill will help to manufacture products with a higher added value to be sold on the global market. Up to one fourth of the production will be supplied to Belarusian markets, about 13 % - to CIS countries and approximately two-thirds – to far foreign countries. Over 200 new work places will be set up at the enterprise.
“Byelorussian Steel Works” is one of the most advanced and efficient basic enterprises of the Belarusian industry”- points out deputy chairman of EABD executive board Gennady Zhuzhlev. Supplementary provision of this European-type enterprise with the state-of-the-art equipment, introduction of innovative technological solutions and output of new types of complicated steel products lead to the growth of export potential of Belarus and a strong influence on allied sectors of the country’s economy and thus will support the economic growth and stable development of the Republic of Belarus’.
“Building of a small-section wire mill is a key project of modernization of Byelorussian Steel Works in the current five-year period”, - said Anatoli Savianok, general director of OJSC “Byelorussian Steel Works – Management Company of “Byelorussian Metallurgical Company” Holding.In 2013-2015 BSW plans to reach the production of 3 million tons of steel per year due to modernization and reconstruction of its steel production. With the existing structure of the rolling facility of the plant, surplus of concast billets and blooms will grow up and by 2015 it will make up around 700 thousand tons per year. This volume will be processed in the new mill to manufacture product in demand”.
OJSC “BSW – Management Company “BMC” Holding and our bank have many years of mutually beneficial relations and construction of the new mill is in the context of these relations”, said the chairman of the executive board of OJSC “Belarusbank SB Siarhei Pisaryk. —This investment project foresees establishment of a high-tech production, expansion and technical revamping of the existing production and will certainly make a weighty contribution in the development of the industry. The economy of the country will receive a complete cycle of ferrous production with the capacity of one million tons per year. This is not only an urge for further development of the national engineerin, but a wide possibility to enter the market with a high-tech quality steel product. I am deeply satisfied with being involved in this large and important project. We strongly believe that the project will be successfully implemented and will bring the expected dividends”.