Russian steelmaker Severstal has announced that it plans to invest approximately RUB 49.5 billion ($877.83 million) in the current year, focusing on the key areas of its strategy. This investment will primarily be aimed at further reduction of costs, increasing the production of high value-added products and further improving customer care.
According to its investment plan, Severstal will invest approximately RUB 32.5 billion ($576.53 million) in its Russian Steel division in this year, with RUB 18 billion ($319.31 million) committed to development projects.
One of the most significant projects in 2018 will be the construction of the new blast furnace No. 3, which will require a total of RUB 28 billion ($496.59 million) of investment over four years. The new blast furnace is scheduled to be launched in 2022 and has a planned output capacity of 2.9 billion mt. This key project will receive approximately RUB 1.3 billion ($23.05 million) of investment in 2018, equal to 5.8 percent of the total value of the project.
In addition, Severstal will invest approximately RUB 17 billion ($301.41 million) in its Resources division in the current year, of which RUB 8.4 billion ($148.96 million) will be invested in asset development.