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Metallurgists are configured to limit input of new capacities

Metallurgists are configured to limit input of new capacities

Leading manufacturers of metallurgical sector of Russia intend to limit the exploitation of new capacities. We are talking about a mini-production of long products. The government agrees to consider this proposal. In any case, such an instruction was given to the relevant agencies. Perhaps, state support for the excess capacity will be noticeably restricted. The Ministry of economy and Ministry of industry and trade received a direct order of Vice Prime Minister Arkady Dvorkovich. By March should be revised rationality of state support for the creation of new capacity. The issue concerns the refurbishment of existing facilities.

However, leading manufacturers are not planning to use state support for investment projects. This practice has not been used before. This was stated by representatives of «Severstal» MMK and NLMK. POI they said the major investment cycle has already passed stage. Other large companies also do not need state support. This was stated by Mechel, metalloinvest and Evraz. However, the limitation of state support will undergo construction of mini-plants. The implementation of such projects began in the late 90s — early 2000-ies. Support for the construction was provided by the governors. The projects have regional benefits. In the end there was a surplus of rental. Begun to see competition between the leading producers and mini-mills. The result was a significant reduction in the cost of production in the domestic market. Export volumes were limited.

«Metal expert» has published their own data on new projects. In 2015 was observed seven applications for projects. Their total production capacity was 2.2 million tonnes of rolled long products. The largest mini-factory «Tulachermet-steel», belonging to the group «coke». The volume of production of the enterprise is annually 1.7 million tons. The cost is just £ 42 billion. Credits the enterprise of Gazprombank. Representatives of the «Coke» saying about the planned government guarantees. Their amount under the loans will be more than 8 billion RUB. In «Coke», however, claim that this project is not excess capacity. The plant is aimed at import substitution.

Black Steelworkers were not provided with direct co-financing from the budget. This was stated by the representatives of the Ministry of economy, having considered the information in the last decade. Further decisions about support will be taken under the guidance of the Ministry of industry and trade.

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