Guryevsk Metallurgical Works (GMZ), a subsidiary of Russian steel producer ESTAR Holding (ESTAR), has announced the resumption of repair works at its open hearth furnace (OHF) No. 1.
The overhaul at GMZ, which was started in October 2008 but was suspended in November due to the crisis in the industry, includes the upgrading of the OHF's main equipment and is expected to be completed by March 2009.
As a result of the repair works, GMZ will be able to increase the annual production capacity of the OHF No. 1 by 10 percent to 110,000 mt of crude steel, and thereby reduce the volume of billets supplied to the mill for further re-rolling by 6,000-7,000 mt per year. The annual financial benefit will reach about Ruble 20-25 million (approx. $641,000-801,000).