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10:23
VORSKLA STEEL GETS LAND PLOT IN HUNGARY FOR CONSTRUCTION OF STEEL MILL

Kyiv, July 29 (Interfax-Ukraine) – Vorskla Steel on July 27 signed a contract worth EUR 6.81 million under which 170 hectares of land in Hungary is to be allocated for the construction of a EUR 650 million metal-rolling mill, whose major investor is Ukrainian businessman Kostiantyn Zhevago, Hungarian mass media reported.

The land plot is located near the populated localities of Fényeslitke and Komoro, close to the town of Záhony at the border with Ukraine.

According to earlier reports, Vorskla Steel was to launch a project in the first half of 2009 for the construction of a steel mill in Hungary and complete it over 2.5 years. The mill's highest possible capacity will be six million tonnes of metalware per year.

In 2006, Vorskla Steel planned to inject EUR 300 million in the construction of the mill in Hungary. Late in 2007, the amount of the planned investment in the project was upped to EUR 350 million. The facility was to be put into operation early in 2010.

The original plans suggested the commissioning of the mill in Hungary simultaneously with a electric metallurgical plant Vorskla Steel in the town of Dmytrivka in Ukraine's Poltava region.

Zhevago's Swiss-based group Vorskla Steel AG implements projects in Ukraine and Hungary.

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