Russia Steelmakers Planning to Invest $20 Billion by 2015 as Demand Grows

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30 Jun 2010

Russian steelmakers will invest about $20 billion by 2015 as demand recovers, OAO Severstal Chief Executive Officer Alexei Mordashov said.

Production will recover to the peak level of 2007 no earlier than 2012 as the government sponsors infrastructure projects and international automakers localize production, Mordashov told Metal Bulletin’s Russian Steel conference in Moscow today. Domestic consumption fell 27 percent and output declined 12 percent last year, he said.
The country’s steelmakers, who turned to exports to boost revenue as domestic use dropped, are looking to the “new frontiers” of Sub-Saharan Africa, India and Asia, he said.

Source: Bloomberg