"We are not just replacing an obsolete furnace with a new one: the project will make a significant contribution to the overall increase in steel output as part of the new strategic cycle," Konstantin Lagutin, NLMK Group vice president for investment projects, said in a statement. 

”We will end up with a more productive and efficient blast furnace with improved environmental performance.”

Crews have begun to install new blast air heaters and de-dusting systems and have started to assemble the main components and steel structures. All of that work is to be completed in advance of a 130-day furnace outage, during which the old furnace will be dismantled and rebuilt from pre-fabricated modules. 

NLMK is investing RUB34 billion (US$502.9 million) in the project.