Russia’s DEMP to increase billet production by year-end

Wednesday, 29 July 2020 17:40:07 (GMT+3)   |   Istanbul

Volgograd region-based Russian steel producer DEMP, which has been gradually developing its ties as an international billet seller, has been carrying out a series of modernization and improvement works, which will eventually lead to higher capacity and more efficient operations overall. In addition, the company’s plan to launch its own wire rod production is still on the table.

DEMP has recently finished all the basic works under its plan to increase its production and logistics efficiency and is now in the process of testing the new adjustments. The company has carried out the modernization of its electric arc furnace and transformer equipment, as well as some improvements in terms of scrap and alloys handling. In addition, DEMP has invested in higher transportation efficiency through purchasing and renting more trucks for its own exclusive use as well as signing an annual agreement with the local railways for exports to Georgia, SteelOrbis has learned.

With the mentioned adjustments, DEMP plans to reach 45,000 mt per month of square billet production, while currently the company’s production is around 23,000-25,000 mt. Most of the billet is being traded to Turkey where the supplier has managed to significantly strengthen its positions over the past year through the establishment of solid cooperation with small buyers who mainly require prompt shipments.

In the future, however, 15,000 mt of the billet capacity is planned for use in DEMP’s own wire rod production. Previously, the company had disclosed a project to install a 200,000 mt per year wire rod line, which was supposed to be purchased this summer and take around one and a half years to be installed. However, transportation of the mill was delayed due to the Covid-19 outbreak this year and transport issues between countries, SteelOrbis has learned.

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