Russian steelmaker Severstal stated that it will allocate RUB 98.3 billion ($1.27 billion) in 2026 for projects at Cherepovets Iron and Steel Works. Of this total, RUB 68.6 billion will be directed toward development projects, while RUB 27.8 billion will be used for maintenance-related investments.
Pellet production complex remains core project
According to Severstal, construction will continue in 2026 on the iron ore pellet production complex, which the company described as its largest investment project since the initial construction of the Cherepovets steel plant. Total capital expenditure for this project amounts to RUB 116 billion.
Severstal explained that the project is designed to introduce high-quality, low-carbon steel production technologies in Russia’s Vologda Oblast. The company emphasized that the new complex will:
- Supply Cherepovets blast furnaces with internally produced iron ore pellets
- Reduce coke consumption in pig iron production
- Allow the decommissioning of sintering machines with negative environmental impact
The steelmaker added that its proprietary technology, confirmed by a government commission, will ensure a 50 percent reduction in hazardous emissions. As a result of changes in pig iron production technology, greenhouse gas emissions are expected to decline by more than 2 million mt per year, while pollutant emissions will be reduced by 96,000 mt annually.
Severstal noted that the pellet complex is scheduled to enter operation in the second half of 2026.
Waste-heat power plant to strengthen energy efficiency
Severstal stated that by the end of 2026 it plans to begin commissioning and testing of a new waste-heat thermal power plant, representing an investment of over 10 billion rubles.
According to the company, the facility will enable the annual utilization of approximately 2.7 billion cubic meters of blast furnace gas and generate around 1.2 billion kWh of electricity from internal resources. This will allow Cherepovets Iron and Steel Works to cover up to 95 percent of its electricity demand through self-generation, in line with Severstal’s energy efficiency strategy. The annual CO₂ emission reduction from this project is expected to exceed 420,000 mt, the steelmaker added.
New galvanizing line planned at rolling mill
Severstal also announced that it will begin construction in 2026 of a new continuous hot dip galvanizing line at the rolling mill of Cherepovets Iron and Steel Works. The project is valued at over RUB 15 billion.
The company explained that the highly automated line will have an annual capacity of 460,000 mt of rolled products and will replace the existing continuous hot dip aluminizing line. Severstal emphasized that the upgrade will expand CherMK’s finishing capabilities and support the production of higher value-added steel products, mainly for the construction and mechanical engineering sectors. Commissioning of the new galvanizing line is scheduled for 2027, according to the steelmaker.