In a statement, Metalloinvest said the new equipment, which will have an annual capacity of around 1.2 million metric tons, will strengthen its position in the Russian and international steel markets. 

“Today we have made another important step in implementing Metalloinvest's strategy of qualitative changes,” Metalloinvest chief executive Nazim Efendiev said during a contract signing ceremony. 

As part of the project, the company will decommission the plant’s No. 2 electric arc furnace. The new furnace is to come online in 2023, followed by the secondary metallurgy facility in 2024. 

“We are proud that Metalloinvest has selected Danieli to develop innovative green metallurgy technology at OEMK,” said Danieli chairman Giannpietro Benedetti.

“This is a strategically important project for our company and it is unique for the entire global steel industry. The new furnace will be the first to combine the use of 100% metallized pellets as raw materials and the smelting of high-quality special steel,” he said.