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  • Construction of steel factory in Khabarovsk
    The project provided construction and maintenance of the modern steel-smelting production with the volume of 242 thousand tons of steel per year with the potential to increase the volume up to 350 thousand tons.

    The project focuses on the construction of the enterprise of secondary metallurgy to use secondary raw materials to perform important ecological function which is the utilization of scrap metal and waste.
    At the same time, the creation of electro steel premise is the first stage of the complex project. The second stage assumes the installation of the rolling mill to produce up to 250 thousand tons of a construction accessories and corner.
    The construction of the plant is planned for the territories of the industrial zone in the industrial are of Khabarovsk city. The area of the land plot for the industrial site is 2,94 hectares. The land plot is owned by the initiator of the project.
    The following stages have been executed within the implementation of the investment project:
    - The land plot is acquired in property;
    - The contract for delivery of technology equipment is concluded and advanced;
    - The design estimates are developed;
    - The positive decision of FAU "Glavgosekspertiza of Russia" is received;
    - The procedure for change of category of lands under construction is performed to get the status of metallurgical production of the II class of danger through public listening;
    - The construction license is attained.
    To construct electro steel-smelting production near Khabarovsk, the following aspects should be taken into account:
    - Location in the industrial zone (southern industrial hub of Khabarovsk);
    - Availability of a source of raw materials;
    - Close location to the objects of transport infrastructure allowing to reduce time and cost of transportation of raw materials from suppliers and finished goods to potential customers;
    - Close location to the objects of energetic infrastructure;
    - Availability of additional space that is necessary for successful maintenance of electro steel premise.

    The production of the future plant is aimed at steel export to fast-growing Asian markets.

    Competitive advantages:
    - Own basis of raw materials for production of metal intermediate links of 350 thousand tons;
    - Convenient transportation to ports of shipment;
    - Fast-growing Asian market;
    - Short period of execution of orders;
    - Unique technology solutions allow 15% reduce in production expenses in comparison with competitors with simultaneous maintenance of high quality.
    The initiator of the project is the owner of Far Eastern steel plant producing 2 million tons of steel in Komsomolsk-on-Amur city. It is the only factory in the territory of the Russian Far East that produces steel with the use of electro steel-smelting technology with further repartition in long products, steel preparation. The initiator has an extensive network of the sections allowing buying and processing about 1350 thousand tons of scrap metal per year.
    In total, 40 production sites have been created in various cities of Russian Far East, including Khabarovsk Krai, Sakhalin region, and Primorsky Krai, that are at the disposal of the initiator.
    The total cost of the project is 4526,8 million roubles.
    The planned initiator's share in financing makes 15% of the total cost of the project (without payments on a guarantee).
    Financial indicators of the project:
    - Net specified project cost (NPV) - 2935,2 million roubles;
    - Discounted payback period on the project (DPBP) - 6,3 years;
    - Internal standard of profitability of the project (IRR) - 35,1%.
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