Bucharest, Romania — Ussuri Capital, a Turkish investment company, recently revealed that a total of €60 million ($67.09 million) will be funded by equity investment for the construction of the first service center in Romania.
The first phase of the project will require a total investment of €160 million. The untied funds will partially support land acquisition, project development, major equipment procurement, and also building of the factory for the production operation. Capital financing will be one of Ussur Multimedia’s methods of covering the rest of the necessary capital.
First things first, the company has begun developing a flat steel production capacity with the help of the vast investment funds. Once the facility is operational, it is planned to produce 400,000 tons annually for a pickling line, 250,000 tons for a cold rolling facility, 250,000 tons for a hot-dip galvanizing line, and 130,000 tons for a color-coating line.
Ussuri Capital forecasts robust financial performance from the project. The company anticipates generating €324 million in revenue two years after commissioning the first-phase equipment. Earnings before interest, taxes, depreciation, and amortization (EBITDA) are projected to reach €38 million, representing a 12% EBITDA margin. Additionally, the company expects to produce €30 million in free cash flow during the same period.
Roman Kurashev, Managing Director of Ussuri Capital, expressed optimism about the project, stating: “Our company is in an exciting phase of development, and this equity round is a significant step towards the next stage of growth.”
Green Steel and Market Protection
According to Kurashev, the company also aims to collaborate with investors who are interested in being part of the green steel industry’s transformation in Europe., positioning the project as part of the region’s ongoing shift toward low-carbon production. He also pointed to the European Union’s Carbon Border Adjustment Mechanism as a protective measure that will help shield European producers from competing flat steel imports, enhancing market value for Ussuri Capital’s project.
Project Development and Future Phases
Ussuri Capital is building the factory from the beginning. The firm concluded a pre-feasibility study last March 2024 and after that, it has evaluated the various property pieces available that are suitable for the project. Besides this, Ussuri Capital aims to build a fund-based steel furnace, a continuous cast module, clean the pollution, etc., in the second phase so that the company can still develop its low carbon steel production capabilities
The project represents a significant investment in Romania’s industrial landscape and is expected to create substantial economic and environmental benefits for the region.