The Russian mining and steel producing group Mechel has announced the launch of production at the upgraded medium-section mill at its Romania-based subsidiary Mechel Targoviste.
In line with a modernization program, two additional mill stands, new equipment for water descaling, new equipment for the heat-treatment furnace, a product-tipping device and new mill rolls were installed at Mechel Targoviste's medium-section mill. The investment in equipment upgrading amounted to €8.7 million ($12.8 million).
As a result of the modernization program, Mechel Targoviste will be able to roll products with dimensions of 150 х 180 mm, to diminish natural gas consumption, to improve the quality of its finished products and to significantly reduce production costs. The company expects cost savings from the renovation to total approximately €2.3 million per year ($3.4 million).
The implemented program at Mechel Targoviste is in line with Mechel's extensive program for modernization of the group's steel and rolling production assets in Romania.
As Mechel Management Company's CEO Vladimir Polin stated, in Romania Mechel owns four steel facilities and in each of these the company is actively working to modernize equipment and to enhance operational efficiency.