OREANDA-NEWS. June 9, 2007. Severstal announces an investment of $109 million to build a new pipe works in the Sheksna industrial area. Due to start operations in the second quarter of 2009, the new plant will be capable of manufacturing up to 250 thousand tons of fabricated sections a year. The output from the works will target the Russian construction industry which is currently experiencing a boom.

The new pipe works will produce round, square and rectangular pipes with a range of diameters from 127mm up to 426 mm. Steel stock will be provided from Severstal’s Cherepovets steel mill and the new Sheksna works is expected to reach its target output by mid 2010. In 2006, the Cherepovets steel mill supplied some 95 thousand tons of product to the construction industry. About half this amount has already been supplied to the industry so far in 2007.

Igor Timofeev, Director of Strategic Planning at Severstal’s Cherepovets steel mill, said, “The investment in the new Sheksna pipe works is entirely consistent with Severstal’s strategy: we will concentrate on producing high value added products, and will be taking advantage of Severstal’s integrated nature by supplying the works from our Cherepovets plant. The Sheksna works is strategically located within reach of both Saint Petersburg and Moscow where the construction industry is showing significant growth.”