In 2010 the Russian steelmaker Severstal plans to spend about $685 million on key investment projects of its Russian steel division Severstal Russian Steel, reflecting its improved confidence in the market outlook.
Accordingly, within the framework of improving the company's business efficiency, a center for the implementation of the major investments projects of the Russian division started its work on April 1 this year. The center will allow Severstal to manage more effectively the processes of the implementation of investment projects, and in the future its activities are planned to be extended to the entire company.
In order to develop the competence of its main contractors, in March this year Severstal acquired a 100 percent stake in Russian developer RC Group, the main stakeholder in Metallurgremont, which is specialized in repairs of steel-producing equipment, and which is planned to be the main contractor for Severstal's large investment projects.
Metallurgremont is to complete the construction of Severstal's 250,000 mt capacity new pipe mill Sheksna Pipe Works, and also to finish construction of the second polymer coating line at Cherepovets, both of which, along with the new mini-mill in Balakovo (currently under construction), are priority projects in Severstal's investment program.
As SteelOrbis previously reported, Severstal has increased its capital expenditure program from $1 billion in 2009 to $1.4 billion in 2010.