OREANDA-NEWS. July 09, 2010. The JSC “Liepajas Metalurgs” (LM) is informing that all conditions precedent to the long-term financing signed with UniCredit MedioCredito Centrale S.p.A. (UniCredit) on December 29, 2009 for the total amount of EUR 85'596'300 have been fulfilled, therefore the financing entered into full force and effect.

The supply contract which includes the entire modernization of the meltshop (the Modernization Program Phase-II), consisting of the electric arc furnace and ladle furnace with related equipment supply, erection and civil works, and necessary infrastructure development, is considered to be in full force and effect as well.

The underline financing structure of the project is based directly on the progress payment schedule and is reflective of the overall project schedule.

The overall financing has an average life of approximately 8 years with the repayment commencing 6 months upon the project completion and is based on a semiannual repayment schedule. The project implementation is scheduled to be completed by the end of 2011. As a result of the proposed modernization, the range of products produced at the JSC Liepajas Metalurgs will be expanded, product quality increased, and production costs decreased, even with the fact that the production capacity will increase.

As a result of the modernization, the modernized meltshop production volume will be suffecient to supply the existing rolling mills with the semifinished product (billet). The main goal of the JSC Liepajas Metalurgs is to gain the competitive market advantage that could be realistically achieved, since the Company will become the most state-of-the-art producer in Europe. Certainly, all environmental European Union requirements will be satisfied.