According to local media reports, Novosibirsk Metallurgical Works named after Kuzmin (NMZK), currently under the control of Russia's largest metal trader Metallservis Group (Metallservis), plans to establish its own crude steel production, which will have an annual capacity of about 300,000-350,000 mt.
Accordingly, the establishment of its own crude steel production will allow NMZK to expand its output of rebar, channels, angles and round bars, and also to partially produce slabs, during the seasonal drop in demand for construction rebar.
Meanwhile, in order to solve its problem with the supply of steel for rerolling, NMZK plans to install a new wide coil slitting line. Following the installation of the new line, NMZK will be able to purchase both slabs and coils for rerolling.
In addition, by 2013, NMZK plans also to install a new electric welding mill ‘20-76' with a capacity of not less than 60,000 mt per year for the production of water and gas and shaped pipes. The implementation term of the project is one year.
Furthermore, NMZK aims also to expand the range of its line pipes for heat pipelines and indoor gas pipelines. Currently, the maximum diameter of the pipes produced by the plant is limited to 159 mm, and now NMZK selects equipment to master the production of pipes of 219 mm, 272 mm and 426 mm diameter.
Total investments in NMZK development program would amount to Ruble 5.8-6 billion (about $190.6-198 million).