NLMK will install hot dipped galvanizing line

NLMK will install hot dipped galvanizing line

Russian steelmaker Novolipetsk (NLMK) and Italian plant maker Danieli agreed on a contract for the installation of a hot dipped galvanizing line with an annual capacity of 340'000 tons. It is expected to commission the line in the beginning of 2006 with a cost of €70 million. The installation of hot dipped galvanizing line is part of NLMK's $1.1 billion modernization program. This modernization program to be financed by the mill's profits. The new line will produce hot dipped galvanized in thickness ranging between 0.4-4.00 mm and wide range in the CIS/FSU or in Eastern Europe. NLMK expects to substitute current hot dipped galvanized imports with the line full capacity. As per the data released by the UK based Iron and Steel Statistics Bureau (ISSB), Russia imported 322'000 tons of hot dipped galvanized last year. However, imports decrased to 30'000 tons in the first quarter of 2003. After the production of the new line, NLMK's two hot dipped galvanized lines' annual production will be increased to 900'000 tons from 550'000 tons. NLMK is aiming to produce 511'000 tons of hot dipped galvanized in 2003. Furthermore, the mill raised its hot dipped galvanized production by 43% to 544'000 tons in 2002 compared to 380'420 tons recorded in 2001.