The Russian steel producer ESTAR Holding (ESTAR) has announced that its subsidiary Zlatoust Metallurgical Works (ZMZ) has started to implement its investment program aimed at increasing the production capacity at its second electric arc furnace (EAF) melting shop.
During the first phase of the program, a second EAF will be installed in the producer's second EAF melting shop, enabling an increase in the melting shop's monthly crude steel production capacity to 7,000 metric tons from the current 5,800 metric tons.
The implementation of the project will cost ZMZ about Ruble 29 million ($1.2 million).
The new EAF is expected to be put into operation by the end of 2007.
During the first nine months of 2007, ZMZ increased its crude steel output by six percent and its finished steel production by 6.1 percent year on year to 465,600 metric tons and to 329,300 metric tons respectively.