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09:59
INVESTMENT IN RUSSIA FERROUS METALS INDUSTRY COULD DECLINE 49.7% IN H1 – MINISTRY

Moscow. July 24 (Interfax) - Investment in the Russian ferrous metals industry could total some 100 billion rubles in 2009, or 49.7% less than the 199 billion rubles invested in 2008, the Industry and Trade Ministry said.

Despite the difficult situation, the metals industry retains investment potential, the ministry said. Fixed capital investment totaled 52 billion rubles in the first half of 2009 compared to 76.3 billion rubles in the same period of 2008. The ministry predicts investment will grow to 118 billion rubles by 2015.

Tax revenue from metals companies totaled 30 billion rubles in the half versus 68.7 billion rubles a year earlier, while the industry's sales margin totaled 9% against 25% in 2008.

The ministry provided a list of three priority investment projects in the ferrous metals industry that need state support. The projects are the development of the Elginskoye coal field owned by Mechel coal and steel group, the construction of an electric pipe welding facility by the ChTPZ Group and the construction of the Kaluga electric metals plant in Vorsino by Novolipetsk Steel.

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