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Sector Russia rolled galvanized rid of import

The Russian metallurgists plans include replacement of imported galvanized rolled products of the sector. Today it occupies ¼ of the market. The expansion of capacity, take the path of «Severstal» and Novolipetsk Steel, Magnitogorsk Plant said. The new project involves the construction of a complex with an annual capacity of 360 000 tonnes of rolled products. As a whole, the increase in capacity will amount to 1.5 mln. Tons. The project will cost 100 million. USD.

Against the background of devaluation RUBkonkurentosposobnost imported rolled down. As a result, this year the volume may fall to 500 000 tonnes from the previous 800 thousand tons, accounting for 18% of the market. At the same time Russian metallurgists have planned volume of projects

Million. tons. As a result, the surplus may decrease and sector profitability, as experts warn the industry.

MMK has signed a contract with the German company SMS Group. We have already made delivery of equipment for the German «Camp 2000» and «Camp 5000». The contract includes the supply of the unit of continuous hot-dip galvanizing. Its annual capacity is 360,000 tonnes of rolled products. Running complex planned for summer 2017. Cost of the equipment is 25 million. EURO. As one of the sources in the industry, the size of the investment as a whole may reach 90−100 million. USD. Representatives of the Magnitogorsk combine refused to comment on the information. It was stated that the implementation of the project in the investment program until 2017 will not influence. Victor Rashnikov, owner of 87.27% stake in MMK said that in 2002, the plant produced 120,000 tons of galvanized steel. Running complex will increase this figure to the level of 1.5 mln. Tons. This project is relevant from the point of import. And this is not the only project of Russian metallurgists.

Similar programs are available for «Severstal» and Novolipetsk Steel. The project of «Severstal» with an investment of 6 billion. RUBpredusmatrivaet construction of the new complex. It will provide an annual capacity of 400 000 tonnes of galvanized steel and 200,000 tonnes of rolled polymer. According to preliminary estimates of the complex it will be launched in 2017. NLMK builds complex worth 7 bln. RUB. The annual capacity of 450 000 tons. Representatives of the companies said that the implementation of projects will displace imports from the Russian market. Its main supplier is China, Kazakhstan and Ukraine. This year, import volumes may be reduced to 500 000 tonnes, taking into account the devaluation of the RUB.

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