Baltic States – CIS, Lithuania, Markets and Companies, Metals Market

Approximately 30 million euros will be invested in the construction of a new electro-metallurgical mini-mill by the financial group Taurus Capital, the Russia-based company TESO Engineering and Luxembourg-registered SSP Company Limited, the company's representative in the Baltics, Gintautas Ramanauskas said on SteelOrbis.com, a news and information website for the steel industry.

"With a small output, we have an idea to create such technology which will allow our production costs to compete with that of the big producers," Ramanauskas said.

The announcement is welcome news for Lithuania since the country's manufacturing sector has suffered from a stark lack of orders during the economic crisis, forcing it to lay off scores of workers.

The move will also boost Lithuania's ailing construction market. Foreign direct investment into Lithuania in the manufacturing sector has plunged 21 percent year-on-year for the third quarter of 2009.

The location of the new mini-mill is yet unknown, but will be chosen by February 2010.

Ramanauskas noted that in addition to the Lithuanian mill five new mini-mills are planned for Russia.

One of the biggest steelmakers in Lithuania is the hardware enterprise Mechel Nemunas, which owned by Russian mining and steel group Mechel.