The Russian steelmaker Severstal has disclosed details of its strategy for the growth of its European operations. The main aims of the producer's strategy is continuous growth in Western Europe, increasing share of finished product portfolio through a focused capital expenditure program, diversification of customer base and developments in new, high-growth markets such as Eastern Europe and the Middle East, and the strengthening of cost position in Italy and Western Europe.
Capacity expansion and increasing production efficiency and development of flat production at Severstal's Licchini Piombino operation in Italy is one of the key points of the company's European strategy. Capital expenditure at Piombino is aimed at capacity expansion, production efficiency, and product mix enhancement.
To achieve the above-stated goals, Severstal is currently constructing a new thin-slab caster and flat rolling mill to expand Piombino's flat products to meet the supply shortage in Italy. The new complex will have an annual production capacity of 1.5 million mt and will be equipped with a Danieli single-stand thin slab caster with the capacity to produce from 90 mm thick slabs. The new flat producing complex will include low, medium and high carbon, HSLA and peritectic grades of steel.
In addition, Severstal plans to increase Piombino's share of finished steel products to 100 percent by 2012 from the current 60 percent and also to increase the plant's steelmaking capacity to 3.1 million mt by the same time.
Moreover, an investment will be directed toward improving equipment for Piombino's high margin longs products and also toward revamping the plant's blast furnace in 2009.
Currently, Piombino specializes in the production of longs products, including wire rod, bars and rails. The annual production capacity of the mill is two million mt of finished steel products.