The Russian steel producer Severstal has announced that in 2010 it plans to invest $1.4 billion for the implementation of key projects aimed at the modernization of the company and at increasing its effectiveness and competitiveness. The sum is 40 percent higher than last year's investment figure.
Of the total sum for 2010, the company aims to invest $685 million in its Severstal Russian Steel division, i.e., double the 2009 figure. Among the main investment projects for 2010 are the start of the construction of the new longs rolling mill in Balakovo, the commissioning of the new pipe mill Sheksna Pipe Works, which is planned for April 2010, the construction of the second polymer coating line at Severstal Cherepovets, which is scheduled to be commissioned in June 2011, and the opening of the new metal service center and the start up of the new stamping line in the automobile cluster in the Kaluga region. Meanwhile, among Severstal's main modernization projects at its Russian operations are the upgrade of the continuous hot galvanizing unit and the reconstruction of the coke battery No. 7, both at Severstal Cherepovets.
In addition, Severstal plans to invest $356 million of the total sum in the development of its mining division Severstal Resources.
"We still remain cautious in our forecasts regarding the further development of the situation. Nevertheless, in late 2009 we started to observe trends towards a steady improvement of the market," Severstal CFO Alexei Kulichenko said in a statement, adding that the company will continue to focus on its vertically integrated steel business in Russia, as well as on new investments in mini-mills.