The Russian steel producer Severstal has received authorization from the administration of the Balakovo municipal district in the Saratov region of Russia for the construction of its new longs rolling mini-mill, Severstal-Long Product Mill Balakovo.
As SteelOrbis previously reported, Severstal's new mini-mill will have an annual rolling production capacity of one million mt of long steel, producing structural products for use in the local market. The investment in the mill's construction will amount to more than $600 million. The main equipment for the mill will be supplied by Austria-based giant engineering and plantmaking company Siemens VAI Metals Technologies (Siemens VAI).
"The implementation of such a big investment project will allow us to annually replenish the regional budgets by Ruble 400 million (about $13.5 million) and to create over 800 new jobs. The estimated annual turnover of the mill is Ruble 25 billion (about $845.3 million). This is extremely important for the region in the new economic conditions. Severstal's project has to become one of the "locomotives" for the economical growth of the region, contributing to the increase of the investment attractiveness of the area and to attracting new investments," the minister of investment policy of the Saratov region, Kirill Semenov, stated.
Severstal-Long Product Mill Balakovo is planned to be commissioned in 2013.