Severstal reduces 2014 investment to below $1 billion

Russian steelmaker Severstal announced it plans to invest $976 million in 2014, lower than compared to $1.3 billion in 2013, focusing on key elements such as enhancing operational efficiency, reducing operational and administrative costs and further improving the product mix.
 
The company plans to spend about $487 million on Severstal Russian Steel division, including $150 million for the completion of constructing a long product mini-mill in Balakovo in the Saratov Region, revamping of continuous cold rolling mill 1700 in Cherepovets and the completion of the development of a specialized steel service center in Saint Petersburg.
 
Investments in the resource operations will amount to about $404 million in 2014, including $195 million on the consolidation of the Vorkutaugol's Zapolyarnaya and Vorkutinskaya mines, while the spending on the maintenance of coal and iron ore operations and health and safety improvement projects are planned at $209 million.
 
The company also plans to invest $85 million in Severstal North America.