Severstal is preparing to launch a new project for 15 billion rubles
« Severstal » (MoEx: ChMF) begins preparations for the launch of a new varietal wiring camp with a capacity of 900 thousand tons at the Cherepovets metallurgical plant (Chermk). A project worth 15 billion rubles. It was planned to launch back in 2022–2023, but it took a replacement of the European supplier of equipment in Chinese. Analysts warn that investments may not pay off due to the fall of world prices against the background of an excess of capacities, the crisis in the construction industry of Russia and the limited export capabilities of the company itself.
Severstal announced the start of cold launching (scrolling and setting up the drives of the Chernovaya and intermediate groups of stories) of the new varietal wire camp 170 at the Chermk site. This year it is planned to launch part of the equipment. Hot launching should begin in the fourth quarter of this year. The exit to the design capacity – 900 thousand tons of products – is scheduled for the first half of 2026, reports Severstal. Investments in the project are estimated at 15 billion rubles.
The company expects that the launch of a stan for the production of a sorbitrated rollever (raw materials for hardware production) will allow you to bring new products to the market for construction and engineering and satisfy the requirements of the key processor of the Severstal-Methes Chermk varietal rental. Kommersant Severstal specified that about 70% of the production of the camp 170 will be sent to Severstal Metiz. In the future, the new line will produce round variety rental and reinforcement and replace the current camps of 150 and 250, calculate in the company.
10.4 million tons of steel
Solded Severstal in 2024, according to the company.
The company planned to launch the camp 170 back in 2022–2023. But in the process of implementation, Severstal was faced with the need to change the supplier of the main equipment, the words of its general director Alexander Shevelev are given in the company. He added that in the end a solution was found that allows not only to launch the equipment, but also to improve its technical parameters compared to the initial ones. According to AK & M, in 2020, Severstal reported that the Italian Danieli became the supplier of the main technological equipment, which would also be engaged in engineering and commissioning of the camp 170. In Severstal, Kommersant reported that the European supplier had to be replaced with Chinese, whose name they did not open. Against the backdrop of the increase in the cost of equipment and its logistics, as well as the need to “re -reduced” the camp for new equipment, the project could rise in price for the company in the amount of up to 100 million rubles, estimates the main strategist of the Vector Capital Criminal Code Maxim Khudalov.
The capacity of the Steel Katanka market in Russia and the CIS countries is estimated at 2.3–2.5 million tons, the volume of Russian production – at 0.7–1 million tons for last year.
The competitors of Severstal in the domestic market are MMK-Metiz, Promsort and Novostal-M, and the Belarusian Metallurgical Plant in the markets of the CIS countries. According to Mr. Khudalov, the Russian market is filled with cheap, low -quality Chinese dedicated products and the need for quality products is high.
Since commissioning began at Chermk, the camp 170 may well be commissioned on time, said industrial expert Leonid Khazanov. But, although a significant part of the varietal rental will be delivered to Severstal-Methes, the volume of demand on its part can be less than previously expected: due to the stagnation of the construction sector of the Severostal-Methesis products, he may also sag, he points out.
The director of corporate ratings of the expert RA Maria Kolomiyets adds that the company will not have opportunities for active export of new products, given the sanctions imposed.
She admits that the launch can again slow down by external factors. As the experts surveyed by Kommersant, the project may not pay off while maintaining the current situation – falling world prices against the background of an excess of power, slowing down demand in China and activating protection measures in many countries (See “Kommersant” from March 31).
Nevertheless, “Kommersant” was nevertheless reported that export of products is also planned without specifying directions. According to Maxim Khudalov, first of all, we can talk about the markets of the Middle East, Iran and Latin America, where competition with China is not so strong.
