Severstal to double PPGI output

Severstal has signed a contract with German firm SMS Demag for the delivery of a second line with annual design capacity of 200,000 tn of pre-painted galvanized iron. In two years’ time, when the line is commissioned, Severstal will double output of this product.

Severstal will double output of pre-painted galvanized iron in two years. Yesterday the metal maker signed off an agreement with German concern SMS Demag for the delivery of a second PPGI production line to Cherepovets Iron and Steel Works. The equipment costs around $40 mln.

The new line will turn out 200,000 tn of rolled products a year. Thus, once the second line is ramped up to design capacity Severstal’s aggregate output of this product will increase 100%.

In analytics view, Severstal remains committed to ramping up the proportion of higher value-added products in total output, which should push up the company’s margins.