|
EBRD lends Mittal Steel Kriviy Rih $200 million
Loan to help boost energy efficiency, increase productivity
The EBRD is lending Ukraine's largest steel company, Mittal Steel Kriviy Rih,
$200 million to help upgrade technology, boost productivity and become more
energy efficient.
The Bank will make a seven year loan to Mittal Steel Company, which bought a
93 percent stake in the Ukrainian company in November 2005. The entire sum
will be on-lent to the Ukrainian subsidiary.
By participating in this project, the EBRD is demonstrating its support for a
transparent and successful privatisation and the introduction of international
business management practices in Ukrainian companies, said Olivier Descamps,
Business Group Director for southern and eastern Europe. The loan will also
help strengthen the local economy, increase steel production, improve
competitiveness and standards within the country’s steel sector, and
significantly boost energy savings, he added. The latter is especially
important given that Ukraine remains one of the most energy-intensive
countries in the industrialised world and its steel sector needs significant
investment to comply with modern requirements of energy efficiency. It will
also reduce the use of natural gas at the Kriviy Rih facility, thus
contributing to the energy diversification strategy of Ukraine.
The loan builds on previous cooperation between the Bank and Mittal Steel
Company in EBRD’s countries of operations. As well helping the company turn
around aging and financially weak plants in Kazakhstan and Romania, last year
the Bank provided Mittal plants in Bosnia and Herzegovina and in FYR Macedonia
with loans to improve, among other things, energy efficiency.
Aditya Mittal, President and CFO, of Mittal Steel said: “We are delighted that
the EBRD is supporting our investment program in Kriviy Rih. In the course of
its longstanding relationship with the Bank, Mittal Steel has learned to value
not only the financial involvement but in particular also the technical
expertise that the EBRD brings to bear. Moreover, the EBRD has considerable
experience in Ukraine predating Mittal Steel’s presence there.”
The Bank is the largest financial investor in Ukraine, having committed more
than €2,2 billion in 77 projects in sectors ranging from banking to
infrastructure and general industry to small and medium-sized enterprises.
|
