The Chairman of the Board of JSC “Liepajas Metalurgs” (LM) Mr. V.Terenjev has informed that the erection of electric arc furnace (EAF) is planned for May 2011. The EAF will replace the old Siemens-Martin technology that was in use for more than 100 years.

The Siemens-Martin furnaces have already been dismantled, and the concrete foundations for the EAF have been constructed. The EAF will be the major equipment unit of the new steel plant.

Delivery of auxiliary equipment will start in May, and the EAF shell – in which steel will be melted - will arrive at the end of May 2011. The reinforced concrete foundations for COSS system (scrap preheater) are fully completed, and concrete foundations are made for the ladle cars that will transport hot steel from the EAF to the ladle furnace (LF) where the steel will be refined till the chemically specified grade. Then the steel will be taken to the continuous casting machine (CCM) for production of billets used as input material in the rolling mills for production of reinforcing bars.

The water treatment plant (WTP) is also completed, whereas the de-dusting plant (DDS) is still under construction. The DDS is the biggest structure outside the melt shop. The plans are to complete also the off-gas filter by the end of May 2011. The process of revamping is fully according to the foreseen project schedule.

 The general contractor for the revamping is Italian company "STG Group S.p.A." that has subcontracted also several Latvian companies. LM employees are also involved in the process of revamping – mainly in the dismantling of old equipment. Some of LM personnel are delegated to steel plants in other countries for training to work with new EAF technology.
 
As was already informed the package of all contracts was agreed upon on 29^th December 2009 for financing of the 2^nd stage of revamping of JSC “Liepajas Metalurgs” with one of leading Italian banks UniCredit MedioCredito Centrale SpA. The total bank financing amount is EUR 85'597'300. All the preconditions for long-term financing were fully implemented and the financing came into force on 30^th June 2010. The total duration of the financing is approximately 8 years and the repayment period starts 6 months after the date of project implementation, which is foreseen till the end of 2011. The repayment will be made by dividing the total amount into equal parts to be repaid during half-year of each year within 8-year period. 8,8 million LVL have been acquired from the above-mentioned long-term loan for the purposes of the revamping during the first quarter of the year.

The LM group has been working with 84,167 million LVL consolidated turnover during the first quarter of this year, which is 2,2 times more than for the corresponding period of 2010, and gained a profit of 1,955 million LVL in comparison with losses during the same period of last year. The LM itself has been working with 81,375 million LVL turnover during three months of this year, which is 2,2 times more than during the same period of 2010, gaining 1,856 million LVL profit in comparison with losses during the first quarter of the last year. The increase of the net turnover is related to the increase of the sale price by 45% and the increase of the raw material price by 23%.