SeverStal invests $77 million

SeverStal invests $77 million at its Cherepovets steel plant to boost production of rolled products for the construction industry

SeverStal today announced an investment of $77 million at its Cherepovets plant to improve its continuous hot-dip galvanizing (HDG) line. The investment is in response to growing customer demand for improved galvanized steel - particularly from the Russian construction industry - and will double the line’s capacity.

This investment allows to double the line’s capacity to 400,000 tonnes and to expand product range to include steel suitable for the application of paint and polymer coatings.

The improvements include the installation of a new furnace and the complete replacement of certain assemblies and units, from strip decoilers to coilers. The company will also install a brand new coating application unit. SeverStal’s Cherepovets plant is currently engaged in a technical and commercial tender for the basic production equipment. Danielli of Italy and CMI of Belgium are taking part in the tender and the results are expected to be announced by 1 May, 2007.