Severstal' : Severstal presents new long product mini-mill in the Saratov Region

28.07.2014

OAO Severstal, one of the world's leading steel and steel-related mining companies, today holds the official presentation of the Balakovo Long Product Mill project in the Saratov Region. The cutting-edge mill, which will produce long products for the construction industry,represents Severstal's largest investment project in recent years.

The presentation ceremony was attended by Valeriy Radaev, Governor of the Saratov Region, Sergey Toropov, CEO of Severstal Russian Steel divison, as well as by several customers, partners and employees of the new plan

Sergey Toropov, CEO of Severstal Russian Steel divison, commented: "The Balakovo long product mill is a cutting-edge production plant designed to meet all requirements and challenges ofmodern steel manufacturing. Maximum cost efficiency at theBalakovo site is ensured by its strategic location with efficientaccess to raw materials and infrastructure as well as direct access to favourable markets. Innovative production technology will ensure that the Mill's environmental impact and energy consumption are significantly lowered."

Valeriy Radaev, Governor of the Saratov Region, commented: "The opening of the first long product mill in the Volga Federal District will not only provide more jobs for theSaratov Region, but will also accelerate further economic development in the region. A new steelmaking production cluster has been set up with the construction of the new plant and this will encourage further development in the region."

About the Balakovo Long Product Mill:

The Balakovo Long Product Mill's has an annual capacity of1 million tonnes of profiled iron for building materials(reinforcement, angle, channel). Hot testing has been launched and the product mix is being developed Total investment in the project stands at around 23 billion rubles.
The Mill will initially supply products to the Volga Federal District and to the Southern Federal District. Some products will be shipped to the markets in Central Black Earth Region and Central Region where there is high demand for steel. The Balakovo production site will create more than 1100 new jobs.

Severstal has invested approximately 90 mln rubles intoregional development in Saratov region since the launch of the project.

The Balakovo Long Product Mill includes leading-edge environmental technologies. The plant operates a closed water rotation cycle and a gas cleaning system with a 99% efficiency, ensuring the dust content in waste gases does not exceed 5 mg/m3, which is in line with European best practices.