After news reports that Russian steel company Severstal had pulled out of a US$600 million investment in T&T, the National Energy Corporation (NEC) issued a statement on Friday to clear the air.
NEC said a Memorandum of Understanding was signed by itself and the National Gas Company on December 19, 2011 with a consortium comprising Severstal US Holdings LLC, Complejo Matalurgico Dominicano SA and Neal and Massy Holdings Ltd to undertake a feasibility study for the establishment of an integrated iron and steel complex in T&T.
Discussions were of a preliminary nature. Severstal is one of the world's leading metal companies. It's been reported internationally that a drop in profits and weak global demand and prices altered its investment plans. Severstal's main shareholder, Aleksey Mordashov at a press conference on Tuesday said his company was suspending its foreign projects in India and T&T, cutting US$3 billion in investment.
However, the NEC statement said, "On September 13, 2012, as reported in international media, Severstal indicated it has frozen plans to build a processing plant in Trinidad and Tobago and is not planning major investments while markets remain sluggish. "Recently, the company has also reported that a drop in their profits and other international conditions were responsible for their decision to withdraw interest in foreign projects that include India and T&T"
However, one online report said the T&T project was "still a big question as Severstal is waiting for the country's authorities." According to the plan, Severstal was to invest US$600 million and build an iron plant with a capacity of 1.5 million tons a year.