Severstal Russian Steel Implements Investment Program in First Half of 2013
09/06/2013 - The Russian Steel division of OAO Severstal, one of the world’s leading steel and steel-related mining companies, invested approximately 8 billion rubles (approx. US$240 million) in its operations in H1 2013, representing 41% of the division’s planned capital expenditure for 2013 as a whole.
Sergey Toropov, CEO of Severstal Russian Steel, commented: “In line with the Group’s flexible and prudent approach to capital expenditure, investment at the Severstal Russian Steel division in the first half of 2013 was slightly lower than the same period in the previous year. This is a result of the completion of the construction of the Balakovo mini-mill, where we are now undertaking testing and commissioning works as well as developing the engineering and logistics infrastructure. In line with our plans, the production of the first wire rod in our pilot production phase is scheduled for October 2013.”
The division’s investment program in 2013 is aimed at developing new products, increasing production capacity and the maintenance of fixed assets. Major projects at the Cherepovets Steel Mill in 2013 include the renovation of the #7 coke battery; the replacement of the #4 turbine generator, and; the construction of external infrastructure at the #12 air separation unit.
Projects to increase the sales volumes of new products continue to be implemented, including: the construction of a steel service center in Vsevolozhsk in the Leningrad Region; the renovation of the Orlov metal fabrication plant which was acquired by Severstal in 2012 to increase volumes for construction sector.
In 2013 the Division launched a number of new projects aimed at increasing volumes of innovative steel products, including the reconstruction of the continuous 4−cage cold rolling mill and the reconstruction of the mill group 2000’s electrical drives and the implementation of an automated control system at the Cherepovets Steel Mill.
Investment in improving health and safety, alongside environmental and social programs, remain the division’s top priorities. In H1 2013 the amount of investment in these programs exceeded 1 billion rubles.
Investment in improving health and safety, alongside environmental and social programs, remain the division’s top priorities. In H1 2013 the amount of investment in these programs exceeded 1 billion rubles.
