Severstal announced to build new 3 blast furnace

2018-02-28

Feb. 28, 2018 - Severstal will invest approximately 32.5 billion rubles into its Russian Steel division in 2018, with 18 billion rubles committed to development projects.

One of the most significant projects in 2018 will be the construction of the new Blast Furnace 3, which will require a total of 28 billion rubles of investment over four years. The new blast furnace is scheduled to be launched in 2022 and has planned output capacity of 2.9 billion tonnes. This key project will receive approximately 1.3 billion rubles of investment in 2018, equal to 5.8% of the total value of the project. New technological solutions introduced during the construction process will significantly reduce the environmental impact of the furnace, as well as ensuring its life for a further 25-30 years. Launching the new furnace will increase the Company’s total steel capacity from 11.7 million to 14.6 million tonnes. Moreover, the construction of Blast Furnace 3 will reduce the CAPEX required during the planned maintenance of Blast Furnace 5, which has now been postponed until 2022, and will also eliminate the decline in output due to refurbishment downtime during that period.   

Among other Severstal Russian Steel 2018 major investment projects: further modernisation of the mill-2000, which produces 65% of Cherepovets Steel Mill’s total production output, the technical revamping and modernisation of turbine generator No. 5, aimed at improving Severstal’s energy efficiency indicators and project on organisation of wide strip production in CherMK’s Cold Rolling Plant.

Severstal Russian Steel will invest 14.5 billion rubles in maintenance, environmental and health and safety projects in 2018.