The Russian steelmaker Severstal has announced that it will invest $77 million into boosting its HDG production at Cherepovets Steel Plant, due to the strong demand from the country's construction sector.
The primary aim of the investment is the improvement of Severstal's HDG line, as a result of which the doubling of the line capacity is expected to be achieved. The improvements include the installation of a new furnace and the complete replacement of certain assemblies and units, from strip recoiling to coilers.
In addition, the company will install a brand new coating application unit at its HDG line.
Alexander Stepanov, technical director at the Cherepovets plant, commented, "This investment allows us to double the line's capacity to 400,000 metric tons and to expand our product range to include steel suitable for the application of paint and polymer coatings. The new products we will be able to produce as a result of the investment will be at the high value end of the market and will be used in the Russian construction industry."