Turkish investment firm Ussuri Capital said it plans to invest up to 960 million euro ($1 billion) to build a carbon-neutral steel mill in Romania.
The company completed the feasibility study and business plan for the project in March and is now carrying out due diligence on identified potential land plots for plant location and working on the potential capital structure of the project, Ussuri Capital said in a press release last week.
The project’s first phase, valued at 160 million euro, will consist in the installation of a push-pull pickling line, a cold rolling mill, and a hot-dip galvanising line and colour coating line. The first phase of the plant is expected to be commissioned in 2027, with the initial feedstock to be hot rolled coils, imported from the non-EU countries.
The second phase, worth an estimated 715 to 800 million euro, will comprise the construction of an electric arc furnace and a continuous casting module, with an anticipated completion date by 2030.
Once operational, the Romanian plant is expected to produce 400,000 tonnes of pickled coils per year, along with 250,000 tonnes each of cold-rolled coils and hot-dip galvanised coils.
Revenues from the downstream operations are expected to reach 324 million euro,with EBTIDA of 38 million euro in two years after commissioning of the first phase and EBITDA margin of approximately 12%.
Ussuri Capital is a Turkish investment firm based in Istanbul and focused on green steel investments, commodities and metals, and mining.
($=0.926827 euro)
Source: seenews