Severstal has invested to date approximately USD 350 million in the construction of a new long product mini mill at Balakovo in the Saratov Region.
The total investment in the long product mini mill will be approximately USD 700 million.
The ZAO Severstal Balakovo Long Product Mill is a next generation metallurgical mini mill which will primarily service the building and construction industries. The mini mill is scheduled to be commissioned in the second quarter of 2013 and will produce more than 1 million tonnes of long products per year.
Mr Igor Baikov Director General of the ZAO Severstal Balakovo Long Product Mill said "The completion of the first stage of this project is an important milestone for us. When we started in 2010 the site was a green field today, the future mini mill has well and truly taken shape."
Various types of work are currently ongoing at the mini mill construction site: from the laying foundations to the construction and finishing of buildings. Since 2010, approximately 75 of a total 150 thousand cubic meters of concrete foundations have been cast for the mill various buildings and production units.
To date the foundations for the production plants have been cast and the pit digging and concreting for the auxiliary facilities are in progress. The laying of foundations for the [track beds for scrap transfer cars] and rolling shop is being carried out around the clock.
Almost all of the metal structures of the section rolling shop, the second production facility at the mini-mill have been constructed. This week, [sandwich panels] supplied by Termosteps will be added to the rolling shop and roofing, using materials manufactured by Finnish Ruukki will begin. The construction of the electric-furnace melting shop where the frame has already been installed will also commence.
The installation of the plant’s permanent road infrastructure and access routes is ongoing. The main step down substation is currently under construction along with the water treatment shop and air separation block. All work is being carried out around the clock, including at weekends. More than 40 subcontractors, the majority of which are from the Balakovo and Saratov region, and 1,000 people are currently working on the construction site.
