The Russian steelmaker Severstal Cherepovets plant, an affiliate of Severstal Russian Steel, has announced the commissioning of its bent steel section workshop development program.
The investment in the project totals Ruble 3.8 billion ($162.4 million).
The project will be implemented in two phases. During the first phase, a new building and three electro-welded pipe mills for the production of 12-63 mm diameter pipes are to be constructed at the premises of the Cherepovets plant. During the second phase of the program, two other electro-welded producing mills for the production of 76-159 mm diameter pipes are to be constructed. The joint annual production capacity of the new pipe mills will be 300,000-330,000 mt depending on the products.
The implementation of the current program will permit an increase in Severstal Cherepovets's bent steel section workshop annual production capacity by 1.8-fold to 730,000 mt. The company has decided to implement the program in question due to growing demand for the products of the workshop in the Russian construction sector.
The project is planned to be implemented in the 2009-2012 period. Following the completion of the project, Severstal Cherepovets's share in the Russian domestic market for the subject products is to increase to 25 percent from the current 20 percent.