Severstal suspenses the construction of a metallurgical plant on the Caribbean

Russian Severstal suspended the construction of a plant for the direct restoration of iron worth $ 600 million in the Republic of Trinidad and Tobago, an island state in the southern part of the Caribbean near Venezuela.

Mr. Alexei Mordashov made an appropriate statement, citing a fall in the company and a reduction in world demand for steel.

Recall that in January 2012, Severstal concluded a memorandum of understanding with the National Gas Company Trinidad and Tobago, National Energy Corporation, Complejo Metalurgico Dominicano SA and Massy Holdings Ltd providing for the construction and construction of a metallurgical plant in La Bree.

The new plant was supposed to ensure uninterrupted supply of Iron of DRI direct recovery to the Electrometallurgical Plant Severstal in Columbus, Mississippi, USA. Within the framework of the project, it was supposed to build a DRI plant with a capacity of one and a half million tons of briquetted chisel iron per year. It was expected that this project would give work to three and a half thousand local residents for the construction period and after that will create 400 new jobs.

However, in the fourth quarter of last year, Severstal received losses of $ 150 million in the amount of US dollars caused by a drop in demand for metal rubles and a decrease in retail prices. At the end of 2012, the net profit of the Severstal group fell three times to $ 762 million, and the revenue decreased by 11%.