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Severstal commissions a second color-coating line in Russia for coated hot dip rolled products

January 3, 2012

OAO Severstal, one of the world's leading vertically integrated steel and steel related mining companies, announced that its steel production unit, the Cherepovets Steel Mill, has commissioned its second color-coating line (CCL-2).

The total investment in the second line is more than 2.5 billion roubles (US$78.1 million). The new line will double the plant's output of coated hot dip rolled products, in line with Severstal's stated strategic focus on increasing output of high value-added products.

CCL-2 is designed to produce up to 200,000 tons per annum of coated hot dip rolled products measuring from 0.3mm to 2.0 mm in thickness and up to [1,650 mm / 165 cm] in width.

"With the new line coming on-stream, our annual production of pre-painted galvanized iron will double to reach 400,000 tons per year, and [we anticipate] the company's share in the Russian polymer-coated galvanized steel market will increase above 20 percent," said Alexander Grubman, CEO of Severstal Russian Steel.

The new line is ecologically friendly, and includes an air reburning plant to reburn furnace off-gases (polymer coating solvent vapor mixture) at 900° C, improving its energy efficiency. The project has created 50 new jobs in Cherepovets, Vologda region.

The new line will use semi-finished rolled stock from the Cherepovets Steel Mill's new continuous hot dip galvanizing unit (commissioned in December 2010) and the hot dip rolled products line at Severgal.

The properties of the rolled products and the leading edge equipment capable of applying any polymer coating to metal will mean that Severstal will be able to fulfill more orders for pre-painted galvanized iron. Specifically, Severstal will be able to supply a wider range of products to sheeting manufacturers and manufacturers of white goods and other household appliances.