Iskandar Mahmoudov's Ural Mining and Metallergical Company (UMMC) at last received a gift from the State
28 September 2011The Government approved of appropriating almost one billion roubles for construction of a metal plant in Tyumen. It almost took two years for UMMC's application to be processed. Until this time the plant had being constructed with the company's own money.
The construction project of the Tyumen metallurgic plant will receive budget allocations of the Russian Federation Investment Fund in the amount of 953.5 million roubles. The corresponding order of the Government has been signed, as it was reported to “RosBusinessConsulting” (“RBC”) in the Ministry of Industry and Trade. Another sum of 607.7 million roubles is promised to UMMC by the Tyumen region. The allocated money will be used for construction of electric power substation of 320 MW power capacity for the needs of the plant. This construction project will be numbered as 21st in the list of nationally important projects supported by the Investment Fund.
In was back in 2005 when UMMC announced the plant project. It was expected that production would start up as early as in 2008, but it was postponed several times. The construction of the UMMC plant started only in January of 2008, and in 2009 the ñompany applied for support to the Investment Fund. At that stage the UMMC Director General Andrey Kozitsyn announced that they expected to get about six billion roubles from the Fund, another nine billion roubles was promised by the company itself.
Now the company promises to set the plant in operation at the end of 2012. The plant annual output is estimated at the level of 545.5 thousand tons of rolled section iron. The total project costs are calculated as 22 billion roubles. As of today about 10 billion roubles has been invested into the project already. More than 50% of the metal work has been assembled at the site of the future plant, main machinery has been delivered.