At the Investor Day in London, the EVRAZ management presented three major investment projects aimed at increasing sales of finished metal products. The projects are scheduled for implementation in 2020-23, and the investment has been announced at $ 1 billion.
In 2019, total capital expenditure is projected to be around US $ 850 million.
EVRAZ expects that in 2019 the effect of efficiency improvement programs on EBITDA will amount to about USD 350 million.
"The goal is to maintain the rate of improvement with an effect of at least 3% of the cost of sales or about US $ 300 million per year," the company stressed.
The main investment projects remain the modernization of the rail and structural mill at EVRAZ NTMK, the construction of a flat-rolled product at ZSMK and a new line for the production of 100-meter rails at the American plant in Pueblo.
The American division is expected to increase sales from 2.3 to 2.6 million tonnes by 2024, sales of large diameter pipes and rail products are expected to reach 0.8 million tonnes in 2019, and in five years the company expects to sell 1 million tons of pipes and rails.
EVRAZ nearly tripled its net income in 2018, to US $ 2.47 billion, and its baseline EBITDA before taxes and compulsory expenses rose 44% to US $ 3.8 billion.
