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NLMK Group’s VIZ-Stal to Launch HP Transformer Steel Production

NLMK Group is proceeding with plans to master the production of high-permeability transformer steel (HPS), including the launch of a 70,000 tonne/year HPS facility by its fully owned Urals-based VIZ-Stal subsidiary. The new facility is to be started up by 2014.
 
The company has started the reconstruction of its two decarburizing annealing lines in order to set up a process flow for mastering the production of premium transformer steel. The project, which is being implemented jointly with LOI Thermprocess (Germany), is expected to cost approximately RUR2.4 billion.
 
The plan for 2011 comprises the engineering of the new line and dismantling of the existing equipment. Startup of the furnace is scheduled for 2013.
 
As part of the project, VIZ-Stal has also started construction of a reversing cold rolling mill with an annual capacity of 75,000 tonnes. Construction of the reversing cold-rolling mill, which will replace the old dismantled mill in the existing cold-rolling shop, is to be finalized before the end of this year. The project will cost around RUR1.4 billion and is being performed in association with Andritz-Sundwig (Germany).
 
These large-scale upgrades at VIZ-Stal will enable NLMK Group to expand its annual high-permeability transformer steel production capacity from 60,000 tonnes (at the main production site in Lipetsk) to 130,000 tonnes.
 
VIZ-Stal LLC, an NLMK Group subsidiary, is a leading world producer of cold-rolled electrical steel and the largest producer of transformer steel in Russia.  In 2007 the company launched a Technical Upgrade Program for the period till 2015 that includes 10 investment projects on construction of new lines and reconstruction of existing ones, which will renew 50% of VIZ-Stal’s equipment. The total volume of NLMK’s investment into the technical upgrade will amount to RUR8.6 billion. This reconstruction is aimed at mastering a new prospective product type – high permeability steel – as well as at improving product quality and increasing production efficiency.