BUDAPEST, July 26 - Ukrainian steel producer Vorskla Steel has made a final decision on setting up a EUR300 million steel mill in northeastern Hungary, near the Ukrainian border, the daily Vilaggazdasag reported Thursday based on information from trade development agency ITD Hungary.

Construction on the plant, which is to have annual capacity of 2.5 million tons, is to begin in the first half of 2008 in the vicinity of Fenyeslitke and Komoro villages, located near a planned intermodal logistics base in Zahony, on the Ukrainian border.