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Evraz Begins Construction of Rolling Mills in Southern Russia, Kazakhstan

12/03/2010 - Evraz Group’s Board of Directors has approved investment in new rolling mills in the Rostov Region of Southern Russia and in Kazakhstan. Both mills are expected to be launched in mid-2013.

Evraz Group’s Board of Directors has approved investment in new rolling mills in the Rostov Region of Southern Russia and in Kazakhstan.
 
The Yuzhny Mill will be constructed in the Rostov Region near the port Ust-Donetsk. It is expected to be commissioned in mid-2013 and have a production capacity of approximately 450,000 tonnes of light sections per annum, including 315,000 tonnes of rebar and 135,000 tonnes of angles and channels. The total cost of the project is estimated to be approximately US$158 million.
 
Yuzhny Mill is expected to be supplied by the billets from Evraz’s Ukrainian steel plant, DMZ.
 
Construction of the Kostanay Mill in Kazakhstan will expose Evraz to the local rebar market, which the company says has high growth potential. Evraz will own a 65% stake in the project. Its local partner will be Caspian Group.
 
Evraz has already obtained the necessary anti-monopoly and construction permits for the implementation of Kostanay project. The plant is expected to be launched in mid-2013. Production capacity is forecast to be approximately 450,000 tonnes of rebar per annum. Evraz’s Siberian plants ZSMK and NKMK will supply billets to this mill. Total investment in the project is expected to be approximately US$131 million.
 
Evraz Group notes that both of these projects are aligned with its strategy of shifting from the production of semi-finished to finished products and of vertical integration in the steel value chain.
 
Evraz Group S.A. is a large vertically integrated steel, mining, and vanadium business with operations in the Russian Federation, Ukraine, Europe, U.S., Canada, and South Africa. The company is ranked the 14th largest steel producer in the world based on crude steel production of 15.3 million tonnes in 2009.
 
Evraz Group’s principal metallurgical assets include three of Russia’s leading steel plants: Nizhny Tagil Iron and Steel Plant in the Urals region and West Siberian Iron and Steel Plant and Novokuznetsk Iron and Steel Plant in Siberia. The company's presence in North America comprises its steelmaking subsidiary Evraz Inc. NA, which includes Evraz Oregon Steel, Evraz Claymont Steel and Evraz Rocky Mountain Steel in the United States together with Evraz Red Deer Works, Evraz Calgary Works, Evraz Camrose Works and Evraz Regina Steel in Canada. Evraz also owns the Dnepropetrovsk Iron and Steel Works in Ukraine, Evraz Palini e Bertoli in Italy, Evraz Vitkovice Steel in the Czech Republic, and Evraz Highveld Steel and Vanadium Corp. Ltd. in South Africa. In Ukraine, Evraz acquired three coking plants: Bagleykoks Coke Chemical Plant, Dnepropetrovsk Coke Chemical Plant, and Dneprodzerzhinsk Coke Chemical Plant.