Severstal launches major new production line for polymer coated rolled steel products at Cherepovets Steel Mill

PAO Severstal, one of the world's leading vertically integrated steelmaking and mining companies, has launched a production line for polymer coated rolled steel products at Cherepovets Steel Mill Metal Coating Workshop number 3 (“MCW#3”).

The launch ceremony was attended by Alexey Mordashov, Chairman of Severstal’s board of directors, Alexander Shevelev, CEO of Severstal, Oleg Kuvshinnikov, Governor of the Vologda region, Andrey Lutsenko, Chairman of the Legislative Assembly of the Vologda region, and Elena Avdeeva, Mayor of Cherepovets.

Investment in MCW#3 amounted to approximately 8 billion rubles. The new workshop is installed with equipment for a polymer coating line and hot dip galvanizing unit. This equipment is expected to produce 200 thousand tons [of polymer coated steel] per year and 400 thousand tons [of galvanized steel] per year.

Alexander Shevelev, CEO of Severstal, said: "The new production facilities will support the expansion of our high value added product range, further import substitution and contribute to the ongoing development of Russia’s construction industry. After MCW#3 reaches full capacity, there will be no need for import suppliers, as the three largest Russian metal processing plants will be able to fully supply the Russian polymer coated rolled steel market. Also, the innovative technology used to produce 3mm galvanized steel is being used to develop lighter steel constructions with thinner walls.

The construction of MCW#3 started in 2015, and on September 1, 2017 the first test products were manufactured. Today, the production of 22 different tints has been mastered at the new polymer coating unit. Tests have been successfully carried out in the application of a chromium-free coating, which is in high demand from manufacturers of household equipment. Severstal is also planning on mastering the application of hot lamination, a completely new technology for the Company, and the application of a decorative film. The new equipment will also be able to produce brands such as Silk Steel , Velvet Steel and Cashmere Steel.

Denis Voronov, Director for Supply and Logistics of Metal Profile Company LLC, commented: "We believe that with the launch of the polymer coating line at Cherepovets we will see a significant improvement in the supply of polymer coated products to our company, as well as a noticeable improvement to the entire Russian market, given the seasonal fluctuations in demand. Now we can fully meet the needs of our customers even at peak periods, with no help from import suppliers. In addition, these new products will contribute to increasing Russia’s share of high-quality premium products, which corresponds to global trends.”

The hot dip galvanizing unit at MCW#3 is scheduled to launch in February 2018. With the unit up and running, Severstal will be able to produce galvanized steel up to 3 mm thick for manufacturers of ultra-light steel for thin-walled constructions, which will encourage development of this technology in Russia.

The main consumers of coated rolled products are the enterprises in the North-Western, Central, Volga and Southern Districts, as well as export markets. The main market for the production of new complex metal coatings is the construction industry.

The construction of MCW#3 is one of the largest industrial construction projects in the Vologda region. More than 20 companies from the region were contracted to work on the construction and installation. The general contractor is AO Koksohimmontazh-2 (Cherepovets), the installation of technological equipment was carried out by Domnaremont and Promservis (companies of Severstal Russian Steel). Up to 850 people a day were involved at the construction site.

The general designer was OOO Severstal-Project, and COCKERILL MAINTENANCE & INGENIERIE S.A., Belgium, was the supplier of the main process equipment.

In the new workshop, 200 new jobs have been created (149 technological employees, 37 service employees, 14 employees for the production preparation section).

At the Metal Expo-2017 exhibition in November, the construction of MCW#3 was acknowledged as the main event of the year in the metallurgical industry.