Severstal to move ahead with capacity expansion plans
Recent press releases from
Severstal detail some of the Russian steelmakers plans to increase its steel
production output to 11.073 million tons in 2005.
Anatoliy Kruchinin, the General Director of
Severstals core
steelmaking operations, indicated that the
production increase is part of the companys wider investment plans.
One investment project slated for 2005 entails increasing the power of existing electric arc furnaces. Boosting the power of the furnaces should enable
Severstal to increase elctrosteel
production 60% year on year to 2.1 million tons.
Severstal also plans to grant over $100 million to Karelian Pellet, its main supplier of ore, to develop new ore deposits that will facilitate
Severstals goal of increased steel
production. A
Severstal-Resource representative recently expressed concerns over the rapid depletion of reserves and a growing deficiency in raw materials.