OREANDA-NEWS. On 10 April 2009 was announced, that MMK signed a number of contracts and loan agreements for the delivery of equipment and services and financing of MMK's modernization projects.

As part of the 2,500 mm Rolling Mill Revamping Project OJSC MMK signed a contract for the delivery of equipment and erection supervision services with ALTA, a.s.(Czech Republic) ("ALTA"), and a contract with PSG International a.s (Czech Republic) ("PSG International") for construction and erection services.

Besides, as part of a project to build a continuous slab caster (№6) and a secondary steel treatment unit in the Company's BOF Shop MMK signed a contract with PSG International. To finance these projects MMK and the Czech Export Bank executed loan agreements for a total amount of USD 155.5 million.

The documents were signed by Victor Rashnikov, President of the MMK Managing Company, Vladimir Plasil, Chairman of ALTA's Board of Directors, Yuraj Surovic, Vice Chairman of the Board of PSG International, and Lubomir Pokorny, Chief Executive Officer of the Czech Export Bank.

The signing ceremony was attended by the Czech Minister of Industry and Trade Martin Riman, the Czech Ambassador in the Russian Federation Miroslav Kostelka, and officials of the Czech Ministries of Foreign Affairs and Finances.

Commenting on the signing of the contracts and loan agreements, Mr.Rashnikov said: "The Russian market remains a priority for MMK. In the current situation the replacement of imports from foreign manufacturers with domestic products and raising the quality of such products has a tremendous importance for the Russian economy. I am certain that the implementation of these projects will allow to meet the strictest requirements of our customers and help strengthen MMK's competitive position."

The № 6 continuous slab caster and the secondary steel treatment unit in the BOF Shop are being built as part of the 5,000 mm Plate Mill Project. The processes for manufacturing large-diameter pipes and auto body sheets require that the steel properties meet the most rigorous standards. Practically all the steel for these uses has to go through vacuum degassing.

The purpose of the secondary treatment unit is precisely to ensure that all the steel poured into the № 6 continuous caster acquires the characteristics needed to produce plate with a class of strength of up to X120 used for the production of large-diameter pipes, and to broaden the steel grades' mix, especially as regards special steels.

These facilities will provide the 5,000 mm Plate Mill with high quality slab 190, 250 and 300 mm thick and up to 2,700 mm wide, thus enabling MMK to set up a complete cycle for production of plate for the pipe sector, bridge, ship and boiler builders.

Following the signing ceremony, the Czech delegation, which included many representatives of the Czech business circles, made a tour of the MMK's plant site.