Russian steelmaker Severstal has announced the launch of Russia's first welded component production line for automakers.
Severstal SMC Vsevolozhsk is a joint venture between Severstal, one of the world's leading steel and steel-related mining companies, and Mitsui, one of Japan's largest financial groups.
The welded component production line welds blanks with a thickness of 0.5 mm to 3.0 mm. The line is fully automated, with automatic quality control for top and bottom welded joints.
The line is currently operating in test mode with production scheduled to begin in early 2015.
Severstal SMC Vsevolozhsk's first batch of welded blanks (flat welded blanks for front and rear doors) will be supplied to Izhevsk Automotive Plant for stamping and further welding as a part of Izhevsk's joint project with a Japanese automaker.
In December 2013, a slitting line was launched at Severstal SMC Vsevolozhsk for cutting cold rolled, hot rolled pickled and galvanized rolled steel strips with thicknesses of 0.3 mm to 4.5 mm. In June this year, a cut-to-length line (mini-CTL) was installed.
Severstal SMC Vsevolozhsk's production volume currently stands at 3,000 mt per month. The launch of the welded component production line should enable the company to reach production volumes between 5,000 to 6,000 mt per month from the beginning of 2015.
Severstal's Cherepovets Steel Mill will provide more than 90 percent of the rolled steel to Severstal SMC Vsevolozhsk.
The total investment in the welded component production line amounts to RUB 1.7 billion ($42.5 million).
At capacity, SMC production will be around 150,000 mt per year. The majority (up to 60 percent) of products processed by SMC will be supplied to automakers. The rest will be sent to construction and engineering companies, including manufacturers of household appliances.