OREANDA-NEWS. May 13, 2008. Volga-FEST, the Frolovo Electric Steel Plant, continues with increase of production rates.

— This year has begun successfully for our plant, — says the General Director of Volga-FEST, Yury Vassilyevich Druzhinin. — Over the first quarter of 2008 we’ve reached a record high volume of steel square billets production -62,З00 t. The output of steel square billets in March of 2008 was 22,300 t (as compared to the planned 20,700 t). Increase of production was reached due to installation of experimental furnace lining and further increase of refractory durability (DSP-50) up to 800 melts. Over three months of 2008 shipments of finished products to consumers exceeded 75,100 t - a 15% increase over the first quarter of 2007. Growth of production over the previous years is obvious: in 2007 Volga-FEST increased the production of square section billets by 12% -the amount reached 221,000 t (production of continuous casting steel billets in 2006 amounted to 197,000 t). Shipments of finished products to consumers in 2007 reached 208,900 t (195,600 t were shipped in 2006).

Growth of production is enabled thanks to modern Italian machinery. The plant is equipped with an efficient gas treatment system and a metallurgical slag processing section; a closed-loop water recirculation system is used in compliance with strict environmental standards.

In late 2007 an important decision was taken concerning a two-stage upgrade of the plant. Its main purpose is to increase steel making up to 480,000 t/year (up to 28 melts per day) and reduce the production costs.

Volga-FEST (Frolovo Electric Steel Plant) is located in Frolovo, Volgograd region, 130 km north of the regional centre. The main activity of the enterprise is production and distribution of continuous casting steel billets of carbon steel grades. In 2007 Volga-FEST was integrated in the metallurgical holding of the ESTAR Group.

The first stage of upgrade envisages the increase of production of the operating arc furnace up to 320,000 t/year (19 melts per day). It is to be completed in the third quarter of 2009 and the estimated investments in the development of electric-furnace melting shop and drop-hammer plant exceed ?25 mln. The second upgrade stage is to take 1.5 years and envisages the installation of a new continuous casting machine with the productivity of 480,000 t of fnished products per year. The investments are expected to reach about ?11 mln. Implementation of the whole technical re-equipment program at Volga-FEST is planned to last till 2011.

The ESTAR managing company also decided to start the construction of the second electric-furnace melting shop and section rolling shop for fittings production near the existing facilities. Launch of new facilities will increase the number of workplaces almost three-fold - that is an important social objective for Frolovo: currently a substantial number of Frolovo residents – 722 people – are working at the enterprise.