Mechel, one of the leading Russian mining and steel groups, has announced that its ferrosilicon producing subsidiary Bratsk Ferroalloy Plant has signed contracts with Russia-based Siberian Plant of Electrothermal Equipment (Sibelectrotherm) for the supply of four ferroalloy electric furnaces with a capacity of 33 MVA each to replace existing furnaces.
The reconstruction will take place during 2011-2012, with Sibelectrotherm to supervise the furnaces' installation and commissioning works.
Accordingly, following the project's completion, Bratsk Ferroalloy Plant's production capacity will increase by 30 percent and its power consumption will be reduced by 10-13 percent.
The contracts' total value exceeds Ruble 1.9 billion (approx. $63 million). The project will be financed via a credit facility provided by Russian state-owned Sberbank.
Currently, Bratsk Ferroalloy has an annual output capacity of 91,000 mt of ferrosilicon.