Bloomberg News

Severstal Has Difficulties With India Project, Kommersant Says

July 04, 2012

Russian steelmaker OAO Severstal has “serious difficulties” in implementing a joint venture with India’s NMDC Ltd. (NMDC), billionaire owner and Chief Executive Officer Alexey Mordashov told Kommersant.

Severstal wants to take control of the venture, while the Indian side opposes this, Mordashov told Kommersant, and property rights and access to water have yet to be determined, he said. The steel mill in Karnataka will have a capacity of 2 million to 5 million metric tons a year.

Severstal has no plans to cut planned 2012 capital spending of about $1.67 billion in response to a recent price decline in the steel market, Mordashov said in the interview. The company expects steel consumption in China to grow in line with gross domestic product, while the debt crisis in Europe threatens the global market, he was cited as saying.

To contact the reporter on this story: Ilya Khrennikov in Moscow at ikhrennikov@bloomberg.net

To contact the editor responsible for this story: John Viljoen at jviljoen@bloomberg.net


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