The Russian steelmaker Severstal has announced a $500 million investment directed toward the construction of a new steel producing facility at its existing plant in Cherepovetsk.
The new facility will include an arc furnace, a ladle furnace, a continuous caster and a rolling mill with annual production capacity of one million metric tons of heavy beams. The new facility, which is a part of Severstal's $6 billion-worth investment project directed toward expansion of its Russian steel division's production capacity, is expected to be completed by 2011.
The new facility will be able to manufacture a wide range of section steel used in the construction industry, including T-beams, broad-flanged T-beams, angles and channel beams.
This will be Severstal's most modern facility based on the mini-mill concept, which cuts energy costs on re-heating billets prior to their rolling, as well as reducing CO2 emissions.
The production of the new facility will target the construction markets of Russia's Northwest region.