Evraz to stop exporting semis

Friday, 30 May 2008 09:31:58 (GMT+3)   |  
       

The Russian steel and mining group Evraz Group will stop exporting semis produced at its subsidiaries to be able to satisfy its own needs in the light of new investment projects, according to Pavel Tatianin, Evraz Senior Vice President for Corporate Relations.

Mr. Tatianin emphasized that Russia is a priority for Evraz. With increasing demand for finished steel products in Russia, Evraz plans to implement new investment projects with the aim of increasing its domestic deliveries by three million mt or by 40 percent. Total investments of Evraz in the next five years will amount to $1.8 billion.

The main investments will be directed toward increasing the group's production capacities of rails, railways wheels, rebar and other longs, and plates.

Evraz has already started implementing the third phase of the investment project at NTMK directed at reconstruction and modernization of rail wheel production. Following the completion of the third phase in December 2008, the mill will be able to produce 580,000 mt of railways wheels per year. The mill is expected to reach full production capacity in the middle of 2009. The total investment in the project is $200 million.

Meanwhile, the reconstruction of the rail producing mill at NTMK will bring its capacity up to 950,000 mt a year, half of which will consist of 100 m long rails. The project is expected to be completed in 2011, at a total cost of €375 million.

At its NKMK subsidiary, Evraz is to establish a new rail production facility with an annual output capacity of 750,000 mt of 50 m long rails at a total cost of €125 million. In addition, a new rebar mill with an annual production capacity of 400,000 mt of rebar and wire rod will be installed at NKMK by mid-2009.

In addition to the abovementioned projects, Mr. Tatianin also announced completely new investment projects by Evraz.

First, a new long rolling mill is to be constructed in Russia's Kursk region with an annual designed production capacity of 400,000 mt of rebar. Currently, Evraz is holding a tender for equipment supply for the mill. The mill will see its first output in 2009.

In addition, Evraz is to construct a new long rolling mill in Kazakhstan, which will be specialized in the production of rebar and channel bars to be supplied subsequently to Russia. The new mill will commence production in mid-2010.

The last but not least Evraz investment is the installation of new plate rolling capacities at ZapSib. The new mill will have an annual production capacity of 800,000-850,000 mt of plates following the completion of the first phase, and about 1.2 million mt in the second phase of the project's implementation.

The implementation of all these projects will allow Evraz to realize its goal - i.e. increasing domestic deliveries, but will also force Evraz to stop exporting semis in order to satisfy requirements at its propective capacities.  


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