Metalloinvest expands steel heat treatment capacity as part of SBQ client-orientation and quality development

Metalloinvest announces that it will build a heat treatment facility for hot-rolled steel at OEMK.

The heat treatment facility will have an annual capacity of 70,000 tonnes of high-quality (Special Bar Quality, SBQ) bars, and will be established within the enterprise's finishing plant. The facility will add to the existing heat treatment capacities at OEMK’s rolling plant #2.

Metalloinvest has agreed an equipment supply contract for the facility with Danieli Centro Combustion, part of Danieli group, the Italian leader in steel plant equipment. The official signing ceremony for the contract took place on 5 June as part of the steel summit «Russian Steel & Global Market: future begins today». The contract was signed by Andrey Varichev, CEO, Management Company Metalloinvest, and Fabrizio Pere, CEO, Danieli Centro Combustion.

The project will cost around 3 bn roubles (including VAT), and includes the construction of a building for the heat-treatment facility and two thermal furnaces, and the creation of heavy-lifting and transmission equipment, as well as associated infrastructure. The first furnace is planned to be launched in 2019, and the second will begin operations in 2020.

The new facility will enable OEMK to carry out various kinds of heat treatment from 400-980°C, a wide range of temperatures, in order to produce high-quality rolled steel products with a specific microstructure. Heat treatment is required in the production of various kinds of steel for springs, ball and roller bearings and construction, as well as for high-strength metal.

Andrey Varichev, CEO, Management Company Metalloinvest, commented: "We are seeing a high level of demand among customers for high-quality bars, which require heat treatment. Creating this new production facility will enable Metalloinvest to increase sales volume of this premium product and reinforce its position on the SBQ market."

Fabrizio Pere, CEO, Danieli Centro Combustion, added: “We are proud to be partner of Metalloinvest for the heat treatment expansion project of the high quality SBQ bars at OEMK. The furnaces, which processes bars ranging from 19 to 90 mm in diameter, will perform five different heat treatments: isothermal annealing (standard and pendular), spheroidizing annealing, high-temperature tempering, and under annealing matching the furnace manufacturing capability together with the metallurgical know how partnership approach.”

The construction of this new heat-treatment facility for hot-rolled steel products is part of the Company's systematic programme to develop production and sales, and increase the client-orientation and quality of its SBQ. The project was launched by Metalloinvest in 2017.

The programme includes measures to modernise OEMK's production facilities and develop the enterprise's sales system, with the aim of increasing production, boosting quality and expanding its SBQ range.

As part of the programme in 2017, a reduction and calibration section in Rolling Mill 350's mid-sized production line was installed at OEMK, which enabled the Company to produce hot-calibrated rolled steel products with precision tolerances in geometric sizes, without the need for further finishing.

In 2017, Metalloinvest supplied around 1 mn tonnes of SBQ to customers, compared with 0.9 mn tonnes in 2016.