Strabag Signs 2 Russian Steelwork Deals

VIENNA -- Austrian builder Strabag, whose IPO last month relied on investors' hopes for growth in Russia, has signed two steelwork deals worth a combined 484 million euros ($722 million) in Russia, it said Friday.

The building group, of which billionaire Oleg Deripaska owns around 25 percent, said in a statement that it had signed a 334 million euro deal to build a steelwork facility for steelmaker OMK in Vyksa near Nizhny Novgorod.

Building is planned to commence in January and to be completed in mid-2010.

On top of that, Strabag also signed a 150 million euro deal to build a 550,000- ton-per-year steelworks in the Tyumen region for the Ural Mining and Metallurgical Company, which will be completed in April 2010.

Strabag sold 1.3 billion euros worth of shares in Austria's biggest initial public offering ever last month. The deals bring its order backlog in the booming region to 1.6 billion euros.

Shares in Strabag have risen after the heavily oversubscribed IPO, but started to drop this month as concerns about the global economy mounted and fell below the IPO price of 47 euros ($70) this week.