Investment Fund of Russian Federation Finances 1 billion Rub to Tyumen Plant Project

The construction project of the Tyumen plant will receive co-financing of 1 billion Rub from the Investment Fund of the Russian Federation.

The Russian government is ready to provide state support from the Investment Fund to build infrastructure of the Tyumen Electric-Steel Plant (part of the Ferrous Steel Division “UMMC-Steel”) of 953.5 million rub.
“The allocated funds will increase the pace of Tyumen Mini Steel Plant construction. Also, we would like to thank the Tyumen region’s administration and the governor for assistance in solving many problems that emerged during the implementation of this investment project”, says Alexander Polyansky, the Director General of “UMMC-Steel”.

It is also planned that the Tyumen region will take part in project’s financing; it will directly invest 607.7 million rubles of its budget.

Construction of Tyumen Electric-Steel Plant is part of a cooperation agreement between UMMC and the Administration of the Tyumen region. The plant is designed to produce 545.5k tons of long products per year. Commissioning is scheduled for the end of 2012. The total cost of investment in the project is estimated at 22 billion rubles, as for today 10 billion rubles of which already invested in the project.

Substation for 320 MWt, funds for its construction is covered under the state support, expected to be commissioned in 2012.

Today, on the site of the future plant more than 50% of the total volume of metal construction has been installed. In addition, almost all equipment is imported: electric-steel melting furnace, out-of-furnace steel processing units, continuous casting machine, tube-rolling mill by Danieli. General contractor is Fitter, JSC (Magnitogorsk), in total more than a dozen subcontractors are involved in the construction.