OREANDA-NEWS. April 30, 2008. Enterprises of engineering and metal processing industries are willing to buy used equipment and to combine their efforts. And yet, every cloud has its silver lining – an emerging competition in the segment will lead to development of SME. Upgrade is the process necessary for the whole chain of branches from mining to finishing of metals. Competition of the global market, to which Russia is a part today, urges metal producers and  engineering industry not only to find the ways, but also to implement new approaches to replace fixed assets. But the ways different industries choose vary fundamentally.

Cast quality

Ferrous metallurgy in Siberia, which is presented by enterprises most of which are parts of the two largest federal holdings, namely ESTAR and Evraz, witnesses large-scale changes as a result of upgrading. The process was only initiated 3 to 4 months ago, but the pace is encouraging. Thus, ESTAR announced its plans to invest more than RR7 mn into its Novosibirsk metallurgical plant named after Kuzmin (NMP) in the next 5 years. The funds will be spent on expansion of capacities and gradual upgrading of the plant. The first stage will include construction of a steel melting shop with an arc furnace, which would enable the plant named after Kuzmin to produce its own slabs for rerolled products. NMP today produces hot-rolled and cold-rolled strip products, as well as seamless and welded pipes with a diameter of up to 133 mm.

The second stage implies installation of a new Steckel strip mill to replace existing aged one to manufacture flat products of 1.5 m width. And finally, NMP will develop new capacities to produce large diameter pipes for oil industry.

Another plant of the Group – Gurievsk metallurgical plant (GMP) – plans to broaden its product line and, at the same time, increasingly focuses on quality control. The plant intends to develop and implement metal casting with slag cutoff, as well as grinding bodies test methods which allow to cut consumption of grinding raw material and avoid cracking of the balls in the mills. The methods are developed to ensure the products comply with global standards.

Evraz Holding, in its turn, has already invested RR4 bn in conversion of its blast furnace No.1 at the West-Siberian Metallurgical Plant (ZSMK) which was made in record time in late 2007.  Thus, the plant raised total output of iron, enhanced specific capacity of the furnace, reduced consumption of coke and energy resources per ton of cast iron. As to Novokuznetsk metallurgical plant (NKMK), the Holding is increasingly focuses its efforts on rail products. According to the chairman of the board and CEO Alexander Frolov, Evraz Group is intending to invest ?500 mn in upgrading of its rail production through 2008-2011.

Used metal processing machinery

it goes without saying that success of metallurgists in replacement of their fixed assets and, hence, in improving quality of their products, deserves respect. Yet, Russian consumers of metallurgic products still opt to imported goods by some positions. Imports dominate in large diameter steel pipes – 27.4%, blanks for large diameter pipes – about 50%, rods for reinforcement of concrete structures – 20%, rolled products and pipes of stainless steel – 59% and 74%, respectively, and coated rolled products – 28%.