Severstal considers to increase investment program

Severstal considers to increase investment program

Russian steel producer Severstal has made a statement that it is considering to increase its investment program by 47% to Rubles 11 billion (approx. $361 million). Before the end of this year, the company is going to install a desulfurizer machine in the converter facility and reconstruct continuous caster in order to produce semis with the specifications for pipe and automotive industries. Furthermore, Severstal will reconstruct blast furnace No: 2 while installing a sheet correcting machine in sheet facility No: 1. Severstal also aims to launch a second electric arc furnace with an annual capacity of 1.1 million tons in 2005. Severstal's annual production capacity will increase to 11 million tons from 9.7 million tons by the end of 2005, after the reconstruction of the blast furnace No: 5 in 2005.