The project will allow Hungary’s only producer of rebars and wire rod to restart steel-making through an investment in an electric-arc furnace, ladle furnace and continuous caster. Together with the existing rolling mill, the new "mini mill" will form the core of an integrated steel plant with an annual capacity of approximately 380,000 tonnes of rolled products.
The establishment of the mini mill will support the continuing restructuring of a recently privatised medium-sized local enterprise. It will also help ÓAM to increase cost efficiency and preserve jobs in an economically depressed region.
The project’s transition impact would derive from demonstration effects of good corporate governance and corporate strategy, given the presence of a foreign strategic investor. Further transition impact could derive from the demonstration effects of low-cost steel-making, staffed to international levels.
Ózdi Acélmûvek Kft (ÓAM) is 90 per cent owned by the Max Aicher Group of Germany, which supports the project with its expertise in the production and marketing of steel products. The principal products of ÓAM are rebars and wire rods primarily for domestic construction and engineering industries.
Loan to ÓAM of EUR 17.6 million, consisting of EUR 10.2 million for the EBRD’s own account and EUR 7.4 million for the account of Raiffeisen Zentralbank Austria.
EUR 23.52 million.
Environmental due diligence did not identify any significant environmental issues associated with the existing rolling mill. Environmental issues identified in the Environmental Impact Assessment (EIA), carried out for the new mini mill in accordance with Hungarian legislation, will be addressed through the implementation of the Environmental Action Plan (EAP). The EAP will be implemented within a period of two years and will ensure compliance with Hungarian and European Union environmental, health and safety regulations. Key areas of the EAP include air emissions abatement measures, including installation of a monitoring system, modifications to the existing waste-water system of the facility to ensure compliance with permit conditions, and the construction of a noise barrier to protect an adjacent housing area. The proposed investment programme has the potential to significantly improve the energy efficiency of the existing facilities.
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