Severstal begins preparatory work at future Severstal Russian Steel construction site

Severstal begin preparatory works at a future construction site for the Balakovo Long Product Plant in Balakovo (Saratov Oblast) by creating a circular greenbelt around the site. When complete, the $ 85.3 mln environmental project will provide for waste treatment facilities and nature protection measures, including a modern gas treatment system and the creation of a closed-circuit water circulation system.

Construction of the Plant will begin upon completion of environmental audits undertaken by the Government and independent experts, and will create 800 new jobs for inhabitants of the district.

Anatoly Kruchinin, Head of Severstal Russian Steel said: “Environmental and social aspects are very important to Severstal. We look forward to the results of the two environmental audits and beginning work on this project in earnest.”

Severstal – Balakovo Long Product Plant CJSC is 100%-owned by Severstal. In July 2007, the Government of the Saratov Oblast and Severstal signed an agreement on the implementation of the investment project. In November 2007, OAO Severstal and the administration of Balakovo Municipal District signed an agreement on lease of the land lot for the construction of the Plant which would manufacture long products for use in the construction industry. The Lot covers 857.5 acres and is located in the Bykovo-Otrogsky Municipality. The Permit for the preparatory works was issued in April 2008. Projected capacity of the Plant is 1 mln tn of rolled products a year. Investments in the project will exceed $ 600 mln, and 800 new jobs will be created. The Plant is planned to be put into operation in 2010.