Severstal' : Severstal ehaces eergy efficiecy i 1b rouble ivestmet project

September 24, 2018

PAO Severstal, one of the world's largest vertically integrated steel and mining companies, has begun commissioning works a 1bn rouble investment project to replace compressors at the Cherepovets metallurgical plant (CHerMK).

The compressor units will be fully commissioned by the end of September 2018. The investment project was launched last October.

The compressor units were supplied by South Korea's HANWHA TECHWIN. Three main compressors which had been commissioned in the 1960s were replaced as part of the project. Outdated equipment was replaced with Samsung Air Compressor SE-110A, compressor units, each with production capacity of 2000m3/min and pressure of 6kgf/cm2, which were supplied and installed by the manufacturer.

Vadim Germanov, Chief Executive Officer of Severstal's Russian Steel division and Cherepovets Steel Works, commented:

'Increasing our energy savings was a priority for this project as compressors are a major electricity consumer at Cherepovets steel mill. The switch to using modern, energy-efficient equipment will reduce the amount of energy used to compress air to the required values by a total of 24% across the three compressors. We estimate that this will save 294 million rubles a year. Investment in enhancing the efficiency of the plant's energy supply is in line with the Company's cost leadership strategy.'

To date, the main equipment supplier has completed the installation of compressors, checked and adjusted electrical signals and automatic valves, tuned the PID controller, capacity regulator and anti-surge protection, and checked automatic loading/unloading and response times. We have also invested in upgrading the cooling systems and power compressors. The equipment is currently being trialed.