Severstal commissions second color-coating line to double output of coated hot dip rolled products

Severstal, one of the world’s leading vertically integrated steel and steel related mining companies, announces that its steel production unit, the Cherepovets Steel Mill, today commissioned its second color-coating line (CCL-2).

The total investment in the second line is more than 2.5 billion roubles ($78.1 million). The new line will double the plant’s output of coated hot dip rolled products, in line with Severstal’s stated strategic focus on increasing output of high value-added products.

CCL-2 is designed to produce up to 200,000 tons per annum of coated hot dip rolled products measuring from 0.3mm to 2.0 mm in thickness and up to [1,650 mm / 165 cm] in width.

Alexander Grubman, CEO of Severstal Russian Steel, commented: “With the new line coming on-stream, our annual production of pre-painted galvanized iron will double to reach 400,000 tons per year, and [we anticipate] the Company’s share in the Russian polymer-coated galvanized steel market will increase above 20%.”

The new line is ecologically friendly, and includes an air reburning plant to reburn furnace off-gases (polymer coating solvent vapor mixture) at 900о С, improving its energy efficiency. The project has created 50 new jobs in Cherepovets, Vologda region.

The new line will use semi-finished rolled stock from the Cherepovets Steel Mill’s new continuous hot dip galvanizing unit (commissioned in December 2010) and the hot dip rolled products line at Severgal.

The properties of the rolled products and the leading edge equipment capable of applying any polymer coating to metal will mean that Severstal will be able to fulfill more orders for pre-painted galvanized iron than ever before. Specifically, Severstal will be able to supply a [wide/wider] range of products to sheeting manufacturers and manufacturers of white goods and other household appliances.

The main production equipment for the new line was supplied by SMS Siemag (Germany) and was designed by ООО Severstal-Proekt. Severstal’s subsidiaries: Metallurgremont, Spetsmontazh and Severstal-Promeservis were also involved in the project.

The first color-coating line at the Cherepovets Steel Mill was running at full capacity just seven months (five months ahead of schedule) after it was commissioned in December 2005. Using the expertise developed from operating the first line, the company is confident that CCL-2 will too soon be at full capacity.