In 2019 and 2020 Severstal will increase investments by 75%, to $1.4 billion, as opposed to $800 million on average in the past 7 years.
“The major part of the investments has to do with the savings of expenses, including placing of conveyer belts at our mining enterprises and the savings of transport expenses. Others have to do with the quality and the product portfolio”, the company CFO Alexei Kulichenko said.
Having reached their peak, the capital expenditures will return to $750 million in 2023.
New investments have to result in the output increase, as after 2023 Severstal plans to additionally produce 1 million tons of steel, while in 2023 the output is expected to be 12.7 million tons as opposed to 12 million tons in 2018. (Ukrainian metal)
