The new mill is planned to start production in 2010 and will have an annual capacity of one million metric tons of long products. The mill will use scrap as its main raw material.
The investment in the project totals $500 million.
Commenting on the planned new mill, Severstal Cherepovets' general director Anatolyi Kruchinin stated, "The location of the construction site for this plant was not chosen by chance. The Russian construction market keeps growing. Over the last year alone, the use of reinforcement bars in Russia increased by 30 percent. The Saratov region and the Privolzhsky market have a shortage of bar products."