17 July 2015

Russian Deputy Prime Minister Arkady Dvorkovich visited Cherepovets Steel Mill (CherMK), the major asset of PAO Severstal, during his visit to Cherepovets for Metallurgy Day and the mill's 60th anniversary. During the visit, a number of new investment projects were announced at CherMK.

In 2017, Severstal plans to launch a new hot dip galvanizing unit with 400 thousand tonne per year capacity and a metal polymer coating unit with 200 thousand tonne per year. This will be the mill's third metal polymer coating unit. By autumn 2015, the preparatory stage will be completed and work on the foundations will be started at the site. The total cost of the project is estimated at 6 billion rubles.

In 2016-2018, the mill's No 4 coke oven battery will be refurbished and auxiliary facilities modernized to ensure fixed assets are maintained and reduce the purchase cost of coke. The estimated cost of the project is more than 5 billion rubles.

The company also plans to construct a ladle furnace complex for steel production at CherMK. This project will reduce production costs, increase output and improve product quality. Investment will total over 2.5 million rubles

In long steel production, construction of a second unit producing grinding balls for raw material companies is planned. The new unit will increase grinding ball production by 30 thousand tonnes a year. Total investment in the project is approximately 0.3 billion rubles.

Alexey Mordashov, Chairman of the Board of Directors of PAO Severstal, said: "We are planning a whole range of investment projects to further improve efficiency in the company. The most significant of our ongoing projects is the construction of an additional coil coating complex at Cherepovets Steel Mill".

As announced earlier, Severstal is planning operational investments of approximately 30 billion rubles in 2015. At the same time, the company is committed to reducing environmental impact. This year, we are allocating over 5 billion rubles to complete a program for the prevention of air pollution across 11 initiatives".

Arkady Dvorkovich, Deputy Prime Minister of Russia, praised the coating coil shop of CherMK, said: "This is one of Russia's most advanced coating coil shops, producing a product which is in particularly high demand domestically. The latest technology and the work of highly qualified experts' have clearly been applied in its construction.

Oleg Kuvshinnikov, Governor of Vologda region commented: "Severstal has contributed significantly to Cherepovets and the Vologda region."

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