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Severstal Continues Work on Balakovo Long Product Mini-mill

11/28/2011 - OAO Severstal has invested approximately $350 million to date in the construction of a new long product mini-mill at Balakovo, a next-generation metallurgical mini-mill scheduled to be commissioned in the second quarter of 2013.

OAO Severstal has invested approximately $350 million (RUR 10.7 billion) to date in the construction of a new long product mini-mill at Balakovo, in the Saratov Region. The total investment in the long product mini-mill will be approximately $700 million.
 
The ZAO Severstal Balakovo Long Product Mill is a next-generation metallurgical mini-mill that will primarily service the building and construction industries. The mini-mill is scheduled to be commissioned in the second quarter of 2013, and will produce more than 1 million tonnes of long products per year.
 
Igor Baikov, Director General of the ZAO Severstal Balakovo Long Product Mill, said: "The completion of the first stage of this project is an important milestone for us. When we started in 2010 the site was a green field; today, the future mini-mill has truly taken shape."
 
Various types of work are currently ongoing at the mini-mill construction site: from laying foundations to the construction and finishing of buildings. Since 2010, approximately 75,000 of a total 150,000 cubic meters of concrete foundations have been cast for the mill’s various buildings and production units. The pit-digging and concreting for the auxiliary facilities are in progress.
 
Nearly all of the metal structures of the section rolling shop, the second production facility at the mini-mill, have been constructed. Sandwich panels supplied by Termosteps will soon be added to the rolling shop and roofing, using materials manufactured by Finnish Ruukki. The construction of the electric-furnace melting shop, where the frame has already been installed, will also commence.
 
The installation of the plant’s permanent road infrastructure and access routes is ongoing. The main step-down substation is currently under construction along with the water treatment shop and air separation block.
 
Severstal notes that all work is being carried out around the clock, including weekends.
 
OАО Severstal is one of the world’s largest vertically integrated steel and mining companies. With assets in Russia and other CIS, the U.S., Europe, and Africa, Severstal’s crude steel production in 2010 reached 14.7 million tonnes. The company also produced 589 koz of gold at its gold mining assets in West Africa, Kazakhstan, and Russia.