Evraz signals higher spending on major investments

Evraz updated the market on its investment programme on Friday, as investors gathered for the company’s investor day in London.

The FTSE 100 steel firm said that in the period from 2019 to 2022, it was considering four major investment projects with the target to increase sales of finished steel products to local markets.

Investment expenditures were expected to be between $830m and $990m per annum during that period.

The company’s capital expenditure level in 2018 was estimated at between $640m and $660m.

“The company expects that in 2018 the effect on EBITDA from efficiency improvement program, which includes the customer focus and cost saving initiatives, will amount to [between] $290m [and] $300m,” the firm said in its statement.

“The target is to maintain the pace of improvements with the effect of at least 3% from cost of good sold, or $250m-$300m per annum going forward.”