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Severstal to Install New Beam Production Facility at Cherepovets
02/29/2008 - Severstal announces plans to invest $500m to install a new EAF-based steelmaking shop and heavy beam mill at its Cherepovets steel mill.
Severstal announced plans to invest $500m to install a new EAF-based steelmaking shop and heavy beam mill at its Cherepovets steel mill.
The company plans to install the entire facility—complete with arc furnace, ladle furnace, continuous-casting machine, and a rolling mill that produces heavy beams—by 2011. The investment is part of Severstal’s $6-billion plan to expand its Russian Steel division by 2011.
The new facilities will manufacture large rolled products for use in the construction industry, including T-beams, broad-flanged T-beams, angle pieces and channel beams.
“The facilities will manufacture large rolled products for the construction industry to meet the growing needs of the construction market of Russia’s North-Western Region,” said Anatoliy Kruchinin, General Director at Cherepovets. “This will be Severstal’s latest facility based on the minimills concept, which cuts energy costs on re-heating billets prior to rolling operations, as well as reducing CO2 emissions.”
Severstal had already announced plans to build two minimills with the same capacity in central Russia by 2010, and the company’s SeverCorr venture minimill went into operation last year in the U.S. The minimill approach is more efficient and more environmentally friendly than some other steelmaking techniques.
To complement the economic and environmental advantages of the new minimills, Severstal is also developing other advanced environmentally friendly solutions, including the use of a closed water circulation cycle and new gas-cleaning and dust-collection systems. The closed water circulation system is already in place at the Cherepovets facility.
The new facility’s entire technological cycle will be concentrated in one place, meaning it will occupy a comparatively small, existing, area and use short internal transportation routes. The company said it would use as much of the existing rail, energy and other infrastructure as possible.
Incorporated in 1993, OAO SeverStal is focused on high-value-added and unique niche products. The company has a successful track record of acquiring and integrating high-quality assets in North America and Europe. SeverStal also owns mining assets in Russia, thus securing its supplies of raw materials. In 2006 SeverStal produced 17.6 million tonnes of steel and had revenues of $12.4bn, PBT of $1.8bn and EPS of $1.27. In April 2007 the company had a market capitalization of $13.6bn.
