OREANDA-NEWS. July 19, 2011. State-owned Belarusian Metal Plant (BMZ) plans to invest 500 million euros in main units in 2011-2015, General Director Anatoly Savenok said at a news conference on Wednesday.

He said 500 million euros would be spent on development, modernization, reconstruction [flat rolled products shop not included here], a new shop to make hot-rolled rod and light-section rolling mill and a few projects that will require the establishment of joint ventures with foreign investors.

He mentioned four largest investment projects for the next five years. The first one is the flat rolled products mill, requiring USD 1 billion in investments. “Last November, we signed a protocol of intent with Italian Danieli. We are in talks over project financing. The project requires huge investments, and there are some points to discuss,” the general director said.

The second project is the establishment of a joint pipe finishing venture. “Our potential partner here is Swiss Duferco, a large global metal trader, which has two productions – in Romania and Saudi Arabia. Our objective is to offer complete sets of pipes to supply to oil fields. Naturally, we aim at exports,” Savenok said.

According to him, BMZ used to have three potential partners, providing various estimates – from 60 million to 90 million euros. The final amount of investments required by the project will be identified after BMZ completes tendering procedures.

The third project is the creation of a joint venture to produce oxygen. A gas oxygen plant will cost an estimated 40 million euros, Savenok said. BMZ purchases oxygen from Minsk-based Krion and has to import some from St. Petersburg.

The pipe finishing and gas-oxygen plant projects are “burning” and need to be implemented within a year, he added.

Another important project that will be started after BMZ completes the construction of the light-section rolling mill is a 30,000-tonne-per-year production of metal cord, to be launched in 2014-2015.