Severstal announces $2 billion investment program for 2011

The leading Russian integrated steel and mining company Severstal has announced that in 2011 it targets a $2 billion capital investment program to improve its operating efficiency and modernize its operational facilities, which represents an approximate 48 percent increase over the level for 2010.
 
In 2011, the total amount of investment at its Severstal Russian Steel division will be approximately $940 million, around a 73 percent increase on 2010, and will include the following key projects: the continued construction of a mini-mill in Balakovo in the Saratov region, the renovation of the No. 7 coke oven battery, the modernization of the No. 5 blast furnace and the construction of a second polymer coating line at Cherepovets, and large-scale IT projects.
 
Severstal's 2011 investments in its mining division Severstal Resources will be about $650 million - up 53 percent year on year, and will include the project to modernize production equipment across the division's iron ore mills and coal mines, the completion of a thermoelectric power station burning coal-mine methane in Vorkuta, the exploration of the Putu iron ore deposit in Liberia, the continued development of the division's gold mining assets and the construction of the new coal mine at PBS Coals.
 
Investments at Severstal North America will amount to $465 million in 2011 - up 69 percent year on year, and will include the construction and commissioning of the second electric arc furnace (EAF), continuous caster, tunnel furnace, pickle line and the second hot dip galvanizing (HDG) line at Severstal Columbus, and the construction of a new cold rolling complex and HDG line at Severstal Dearborn.
 
In 2011, Severstal expects steel consumption in Russia and CIS to increase by approximately eight percent year on year.