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FYR Macedonia steel industry gets a boost from EBRD
A US$ 15 million (ECU 13.5 million) loan from the European Bank for Reconstruction and Development (EBRD) will allow Makstil, the largest steel producer in the former Yugoslav Republic of Macedonia, to maintain its position as the leading steel plate producer in the country. The loan, which finances the modernisation of the Makstil plant, will also reduce dust emissions and improve energy efficiency.
"With one of the lowest levels of foreign direct investment in the EBRD’s region of operations, FYR Macedonia will benefit from Makstil’s increasing volume of imports and exports, helping the country to more fully integrate into the world economy," said Olivier Descamps, Director of the Bank’s FYR Macedonia team. "As the largest investment to date by an international strategic investor in FYR Macedonia, the project will encourage the international business community to take a closer look at the country’s potential."
The seven-year loan will be used to modernise steel-making and casting facilities at Makstil and to restore integrated production capacity for approximately 400,000 tonnes per year of plates. A significant part of it will be exported to the Balkans countries. It will also increase plant efficiency and reinforce Makstil’s markets
Makstil’s modernisation plans, in particular the proposed installation of continuous casting, are expected to decrease dust emissions, which have exceeded national norms in the past. The modernisation will also significantly improve energy efficiency by introducing new technology.
Makstil was formerly part of Rudicni i Zelezara Skopje, which was developed in the 1960s as a state-owned steel producer and was heavily affected by the disruption of the former Yugoslavia’s internal market between 1992 and 1997. In December 1997, Duferco Skop Investment Ltd, a company with a significant shareholding by Duferco Investment International Holding, acquired 54 per cent of Makstil from previous shareholders and committed to modernise the works.
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