Severstal Announces Investment Plan for 2021
Russian steel maker Severstal announced its investment plan for 2021. This year, Severstal's investment plan is USD 1.35 billion and will focus on a
Russian steel maker Severstal announced its investment plan for 2021. This year, Severstal's investment plan is USD 1.35 billion and will focus on a number of large projects in the Severstal Russian Steel division and resource enterprises, as well as on key areas of the company's strategy, namely excellent customer experience, leadership in cost reduction and new opportunities. In 2021, the company will invest USD 453 million to maintain existing capacities, and USD 42 million to improve industrial safety, labor protection and environmental projects. Investments in IT and digital projects will amount to USD 124 million, while the top projects include Severstal's transition to a new generation of SAP ERP system - SAP S / 4 HANA solution, development of e-commerce areas, production automation, supply chain management and implementation digital instruments.
Investments in the Severstal Russian Steel division in 2021 will amount to about USD 785 million, of which USD 469 million will be directed to development projects. The largest projects of the division are the construction of the second stage of coke oven battery No 11, the first stage was put into operation in the hot test mode at the end of 2020 and the launch at full capacity is scheduled for 2022, bringing blast furnace No 3 to its design capacity, and investments in section mill and heating furnaces.
Investments in the company's resource enterprises in 2021 will amount to about USD 524 million, of which USD 267 million are investments in production development. One of the most important areas for the company's investments this year will be the main phase of the construction of the Cyclic Flow Technology complex at Karelsky Okatysh. Cyclic Flow Technology is a modern technology for the transportation of rock mass by dump trucks, which significantly reduces emissions from the operation of equipment in the quarry. Severstal will continue to implement a program to increase production at the Yakovlevsky mine, which will increase the company's output to 5 million tonnes of ore by 2023. Other priorities of the investment program at Severstal's resource assets include increasing production at Vorkutaugol and the development of the Pechegubskoye field by Olkon.