Ussuri Capital, a Turkish investment firm, is setting its sights on Romania for the construction of an innovative steel plant, prioritizing low-carbon flat products, as reported by S&P Global. Following the completion of a preliminary feasibility study in March, the company is diligently reviewing potential sites for this cutting-edge production facility.
This ambitious project starts from the ground up, featuring the establishment of an electric arc furnace (EAF) with a notable annual capacity of 1.2 million tons of steel. Additionally, it will incorporate a continuous strip casting line capable of producing 1.2 million tons of hot-rolled coils each year. The initiative aims to leverage local scrap metal in its manufacturing process, with an anticipated operational launch between 2027 and 2030.
The financial roadmap for this venture outlines capital investments of €160 million for the initial phase, which includes setting up pickling, hot-dip galvanizing, color coating lines, and a cold rolling mill. A further €700-800 million is projected for the subsequent phase, focusing on the construction of an EAF and a continuous casting module.
Upon completion, the facility is poised to deliver an annual output of 400,000 tons of pickled coils, 250,000 tons of cold-rolled coils, and 250,000 tons of hot-dip galvanized coils. In the interim, as the electric arc furnace shop progresses towards full capacity, the plant will process hot-rolled coils sourced from non-EU countries, beginning operations by 2027.
Ussuri Capital anticipates that, within two years post the commissioning of the first phase, the revenue generated from downstream operations will soar to €324 million.
This development is indicative of a broader industry trend towards innovation and sustainability in steel production, as exemplified by steelmaker Industeel (a subsidiary of ArcelorMittal Downstream Solutions) commencing the construction of a vertical continuous casting machine (CCM) at its facility in Le Creusot, France, with a €52 million investment, aiming to enrich its product range with lightweight slabs of up to 35 cm thickness.
