Project description
and objectives:
|
The proposed project is for working capital and energy efficiency investments
at Mittal Steel Skopje. This will enable the client to develop this business
based on purchasing semi-finished intermediate steel products for re-rolling.
The energy efficiency measures will consist of the purchase and the
installation of steam boilers and the switch from oil firing to natural gas in
the hot-rolling mill.
|
Transition impact:
|
Sources of transition impact would be:
-
Restructuring
Mittal Steel has a proven track record of
significantly improving within a short period of time the operational
practices at poorly performing plants. Mittal Steel maintains for all its
operations a Knowledge Integration Programme which enables Mittal Steel
managers to share best practice management experience between plants belonging
to the group. This will facilitate knowledge transfer to the local economy. A
further element would be the energy efficiency measures which would help to
reduce the energy intensity of the operations
-
Corporate governance
The rolling mills are now majority owned
by Mittal Steel, one of the major players in the global steel industry. Mittal
Steel will introduce international accounting standards (US GAAP), introduce
an environmental action plan and will generally take measures to improve
practices on the procurement and sales sides.
|
The client:
|
Mittal Steel Skopje, a company which majority owns a hot-rolling and a
cold-rolling plant producing steel hot and cold rolled coils as well as
galvanised and prepainted steel. The Company is 100% owned by Mittal Steel
Company N.V. which has recently become the largest steel company in the world
with sales of USD 31.2 billion and steel shipments of 58 million tonnes in
2004.
|
EBRD finance:
|
Loan, EUR 25 million.
|
Total project cost:
|
EUR 25 million.
|
Environmental impact:
|
Screened B/1.
An energy audit has been conducted on the facilities in November 2004 and an
Environmental Audit and Analysis will be conducted on the company and on the
proposed investments. An Environmental Action Plan (EAP) will be developed to
bring the company into compliance with EU IPPC standards. The PSD will be
updated once the environmental due diligence is completed and an Environmental
Action Plan is agreed with Mittal Steel.
|
Technical
cooperation:
|
An energy efficiency audit has been performed which was financed under an
existing framework contract, funded by the CEI, Central European Initiative
(Italy).
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
|
Company contact:
|
Mr Rajiv Bhatnagar
Mittal Steel Skopje
Tel: +389 2 3288 200.
|
EBRD contact:
|
Vlado Bojadzievski, Operation Leader: bojadziv@ebrd.com
|
Business opportunities:
|
For business opportunities or procurement, contact the client company.
|
General enquiries:
|
EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
|
