On February 4, Werner Auer, CEO of Austria-based plantmaker Siemens VAI, said that Russian steelmakers have made up for the collapse of production in 2009 caused by the worldwide economic crisis. "2010 saw an increase in steel production again almost to the level of the record-breaking year of 2008, and companies have started again to increase their investment in the expansion and enhancement of their production," explained Mr. Auer. He went on to say that he has observed an "increased demand for new technologies to be used primarily in new plants or in the context of modernization."
Meanwhile, Andreas Lemp, Siemens VAI's manager responsible for systems business in Moscow, said, "Contrary to many other steel nations, Russia has its own raw materials and energy." "This puts Russia in a good position to become a cost leader in production, and also among international competition," Mr. Lemp added.
According to Auer, the expansion of production capacities in Russia is in line with transformation efforts and technological modernization. "This is because Russian steel producers will better utilize their raw material, save on energy costs and fulfill stricter environmental regulations. Russia will also increasingly produce more sophisticated products, for example for household goods and the automobile industry," Auer stated. Therefore, existing steel plants need to be modernized and enhanced, he concluded.