Lysva Iron and Steel Works has postponed the construction of the second cold-rolling shop for an indefinite period because of the absence of funds and the unfavorable economic situation in the country.
“We started construction when the situation was favorable. But since 2014 we have been experiencing the lack of financing, the banks were not interested in financing us, and last autumn we were forced to stop the construction”, the company managing director Victor Rodionov said.
So far the company has invested some 6 billion rubles in construction, but to further increase capacities LMZ needs 50 million euro.
At present LMZ is working at 50% of capacities, as the output decreased because of the drop of the main customers demand. (Ukrainian metal)