16:35 18.10.2012

President notes significant role of SCM in attracting investment in Ukraine

2 min read
President notes significant role of SCM in attracting investment in Ukraine

Ukrainian President Viktor Yanukovych has said the high contribution of Ukraine's largest private holding company, System Capital Management (SCM, Donetsk), in attracting investment to the country's economy and modernizing the metallurgical industry.

The head of state said this on Thursday at a ceremony to open the site and lay the first stone of a new air separation unit (ASU-1400) worth a total of EUR 130 million at Yenakiyeve Steel Mill (Donetsk region), part of the Metinvest Group.

"This is a pilot project that will be implemented at Yenakiyeve Steel Mill jointly with a French company [Air Liquide], which is investing about EUR 115 million in direct investment in the project. This will be an investment in our economy, our metallurgical industry," Yanukovych said.

He added that this kind of project was being implemented in Ukraine for the first time and that much would depend in future on the success of its implementation.

As reported, French gas producing company Air Liquide will build a new air separation unit worth EUR 130 million for Yenakiyeve Steel Mill that will help produce oxygen, nitrogen and argon for the company on outsourcing terms. Metinvest will spend about EUR 26 million on the project.

The volume of Air Liquide's investment will be financed jointly with the EBRD that provided a EUR 85 million loan.

It is planned that the air separation unit will supply industrial gases to Yenakiyeve Steel Mill and other businesses in Ukraine.

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