Russian steelmaker Novolipetsk Steel (NLMK) and Belgian fund Sogepa plan to invest 100 million euros each in the development of NLMK Belgium Holdings (NBH), in which they own a 49% stake each, between 2019 and 2021, NLMK said in a statement on October 10.
“Funds allocated to NBH will go towards the execution of Strategy 2022 investment projects, aimed at boosting the production capacity of niche products in both European Divisions,” NLMK said.
The companies agreed on joint parity guarantees for banking financing of NBH.
The agreement provides Sogepa with an option to purchase 24% in NBH from NLMK in 2023. (Prime/Ukrainian metal)