Tuesday, 22 Feb 2011
In 2011 the total amount of investment at Severstal Russian Steel will be approximately USD 940 million around a 73% increase on 2010 and will include the following key projects: the continued construction of a mini-mill in Balakovo in the Saratov Region, the renovation of the No 7 coke oven battery, the modernization of the No 5 blast furnace and the construction of a second polymer coating line in Cherepovets and the large-scale IT projects.
In 2011 the total amount of investment at Severstal Resources will be approximately USD 650 million around a 53% increase on 2010 and will include a project to modernize production equipment across the division’s iron ore mills and coalmines, the completion of a thermoelectric power station burning coalmine methane in Vorkuta, an exploration of the Putu iron ore deposit in Liberia, the continued development of the division’s gold mining assets and a coalmine at PBS Coals.
In 2011 the total amount of investment at Severstal North America will be approximately USD 465 million around a 69% increase over 2010, and will include the construction and commissioning and start-up of the 2nd Electric Arc Furnace, Continuous Caster, Tunnel Furnace, Pickle line and the 2nd Hot Dip Galvanizing line at Severstal Columbus, new Cold Rolling Complex and Hot Dip Galvanizing line at Severstal Dearborn.
Overall, the level of CAPEX represents an approximately 48% increase over the level for 2010.
Mr Alexei Kulichenko CFO of Severstal commented that “In 2011 Severstal will continue to make investments across its businesses in order to enhance our position as a market leader in the production of high added value products, improve our operational efficiency and reduce costs. In Russia and CIS, steel use is estimated to increase by approximately 8% in 2011.”