In order to strengthen further the Group''s competitiveness in its main markets, SIDENOR decided to proceed to investments amounting to euro 20 mil., for the upgrade and expansion of its existing production facilities. These investments concern SIDENOR''s plant in Thessaloniki, SOVEL''s plant in Almyros, Magnisia and CORINTH PIPEWORKS plant in Thisvi; completion is expected by second quarter of 2008.
More specifically, a new reheating furnace will be installed and the rolling line will be upgraded at SIDENOR''s rolling-mill in Thessaloniki, in order to increase the annual production capacity of final rolled products, mainly reinforcing bars, from 600 KMT to 800 KMT per year.
An expansion is also under evaluation in SOVEL''s rolling-mill facility in Almyros, Magnisia.
Also, SOVEL''s pipe mill will be upgraded, and extend its product range to include high value added API specification pipes. These types of pipes are used for the transportation of oil and gas, and will be complimentary to CORINTH PIPEWORKS ERW product range. This investment will enhance SIDENOR''s Group API pipe product capabilities, and strengthen its position as a leading supplier to the energy industry worldwide.
Finally, CORINTH PIPEWORKS will upgrade the production capacity of its large diameter SAW pipe mill by 25%. This investment is driven by the increasing demand for high quality pipes for the transportation of oil and gas in international markets, such as those of North America, North Africa and West Europe, where the company has established a leading position.