Russian steelmaker and miner Severstal will invest in 2021 about RUB 54.3 billion ($733 million) for the development of its Cherepovets Steelworks and other production assets of the Russian Steel Division, the company says.
Severstal will start this year the construction of the new wire mill-170. The RUB 2.6 billion project will enable production of new types of products of higher quality and at a lower cost, the enterprise claims.
More than RUB 500 million will be directed to a large-scale programme for the reconstruction of pipe production. These funds will be used to build a second batch furnace and a controlled cooling unit, along with a sheet-straightening machine at the Kolpino site. These and several other projects are aimed at improving the quality of pipe products, Kallanish notes.
About RUB 2.1 billion will be spent on the construction of electric arc furnace No.1 (EAF No.1) and a second steam injection pump (PN No.2). The design capacity of the new EAF will be 1.3 million tonnes/year of steel.
“Despite the difficult situation caused by the Covid-19 pandemic, our goals for the development and modernisation of production facilities remain unchanged,” says Severstal general director Evgeny Vinogradov. “In 2021, about 90% of investments, or RUB 48.97 billion, will be directed to the development of industrial facilities located in the Vologda region.”
Severstal’s 2020 crude steel output and consolidated product sales each declined -4% on-year to 11.85mt and 11.2mt, respectively (see Kallanish passim). Consolidated full-year revenue was down -15.8% on-year to $6.87 billion due to the Covid-19 pandemic impact.
