Severstal : launches flexible steelmaking unit capable of processing high volumes of liquid cast iron

PAO Severstal, one of the world's leading vertically integrated steel and steel-related mining companies, is reconstructing shaft furnace No. 1 in the electrical steel smelting and processing production facility at Cherepovets Steel Mill (part of Severstal's Russian steel division). The total investment will amount to about 3 billion rubles. The project is fully in line with the Company's fundamental strategic priority of achieving cost leadership, and will be implemented within the framework of the announced investment plan for the current year. The launch of the refurbished unit is scheduled for Q4 2020.

Alexander Shevelev, CEO of Severstal, commented:

"We invest in three main areas: maintaining high production capacity, reducing final production costs and incorporating unique technical solutions. Our new "flexible steelmaking unit" will be built on the site of the former shaft furnace. It will work flexibly, combining the properties of a shaft furnace with those of a small converter. This means that the upgraded unit will be able to process the additional volumes of liquid pig iron, which will be available after the launch of blast furnace No. 3. This will reduce the costs of producing electrical steel products. In addition, it will enable us to easily regulate the technical process behind our steel smelting, and adapt flexibly to the commodity market."

Italy's Danieli will supply both the basic and complex engineering solutions for the project, as well as its main processing equipment. The flexible steelmaking unit will have an annual design capacity of 1.3 million tons of steel. In addition to this, the unit will produce the same volume of steel as the existing shaft furnace No. 2, using a combination of 85% liquid pig iron and 15% scrap.