Uzmetkombinat to construct facility for vacuuming liquid steel

The Government of Uzbekistan issued a resolution “On measures on implementation of investment project “Expanding production capacities with construction of facility for vacuuming liquid steel with reconstruction of the unit on complex processing of steel”.

The document was adopted in order to ensure contingency of the capacity of steel production and on this basis to expand the product range and increase the export potential of Uzmetkombinat.

The resolution said that the feasibility study of the project with total cost of US$17.094 million was developed and it was examined by the authorized bodies.

In the result of tender trades, the agreement with ADREM INVEST SRL (Romania) for US$13.1 million on supply of technology and technologic equipment, carry out installation and assembly works, and training of the personnel.

The Government approved main technical-economic parameters of the feasibility study of the investment project with commissioning of the units in the fourth quarter of 2013.

According to the resolution, the project will be financed due to own resources of Uzmetkombinat for US$8.1 million and loan of the Ipoteka Bank for US$9 million.

The loan will be issued for five years with one year grace period. Interest rate on the loan set at 8% APR.

Uzmetkombinat is a debtor and executive body, responsible for implementation of the investment project, targeted and effective use of the loan.

Expenses, related to repayment of the loan and interest rates, will be conducted due to own resources of Uzmetkombinat.