Turkish investment company Ussuri Capital has announced that it is in the process of securing 60 million euros ($67.09 million) in equity investment for financing a flat steel production complex in Romania. The company estimates that the total capital investment for the first phase of the project will be 160 million euros.
The secured funds will play a strategic role in the project’s development, according to Ussuri Capital. The funds will be used for land acquisition, project development, procurement of key equipment and the construction of the main production complex. Project financing will cover the remaining capital expenditure.
Initial investment cost
The company anticipates that capital investments in the first phase of the project will total 160 million euros. This investment will establish an annual capacity of 400,000 tons for a pickling line, 250,000 tons for a cold rolling facility, 250,000 tons for a hot-dip galvanizing line and 130,000 tons for a color-coating line.
30M euros free cash flow expected
Ussuri Capital stated that approximately two years after commissioning the first-phase equipment, they expect 324 million euros in revenue, 38 million euros in earnings before interest, taxes, depreciation and amortization (EBITDA) (about 12% EBITDA margin), and 30 million euros in free cash flow.
Roman Kurashev, managing director of Ussuri Capital, commented on the project, stating:
“Our company is in an exciting phase of development, and this equity round is a significant step towards the next stage of growth.”
According to Kurashev, the company also aims to collaborate with investors who are interested in being part of the green steel industry’s transformation in Europe. He expressed confidence that the introduction of the carbon border adjustment mechanism will further protect the European steel market from flat product imports, creating value for market-focused producers.
Project developed from scratch
According to a previous statement from GMK Center regarding company goals, Ussuri Capital plans to build a new facility in Romania for the production of low-carbon flat-rolled products. The company completed its pre-feasibility study in March of this year and conducted an extensive review of land parcels suitable for production. The project is being developed from scratch and will include the construction of an electric arc furnace and a continuous casting module in the second phase.
