On September 28, 2007, JSC Liepājas Metalurgs signed several contract agreements to modernize the existing steel works. The main agreement was signed with a consortium led by Siemens VAI Metals Technologies GmbH & Co., which partnered together with Habau Hoch- un Tiefbaugesellschaft m.b.H, Austria.

 

As it was mentioned in the article published by “Bizness&Baltija” on March 23, 2007, according to the Spring price level, the management of JSC Liepājas Metalurgs referred to a potential investment figure of approximately EUR 250 million. Long-term financial instruments shall be used to finance the modernization program.

 

Due to fact that the incorrect information regarding the consortium and other business partners was provided in the “Biziness&Baltija” article dated October 1, 2007, JSC Liepājas Metalurgs is unable to validate the information that appeared in that article regarding the modernization.

 

The financing structure is currently in the discussion process. The financing is expected to take place in the second half of the year 2008. The precise scope of investments could be stated only when the financing work has been completed.