OREANDA-NEWS. March 18, 2011. Construction work has started at ChelPipe's Chelyabinsk unit on Phase II of its Ceramic Flux project. Commissioning of the new equipment, which will have a 7,000 tonne per year capacity, is set for September 2011. Installation work is to start in May, and HAZ Sweden will be general equipment supplier. The expected cost of the project is approximately 650 million rubles (USD 22.9 million). In December 2004, ChelPipe commissioned Phase I of the Ceramic Flux project, with a 7,200 tonne annual capacity, Start up of the unique ceramic flux production allowed the Chelyabinsk unit to raise the quality of its own products and become Russia's first producer and supplier of the sought-after flux. Phase II of Ceramic Flux will allow enhancing current production technical capacities, application of a number of innovative solutions, particularly the use of a directly heated rotary kiln. will significantly improve products’ technical properties. The start up of new production facilities in Chelyabinsk over the past year is driven by higher demand for quality in pipe products as well as in their components, including in the ceramic flux used for welding large-diameter pipes. Following the completion of Phase II of Ceramic Flux project, ChelPipe's Chelyabinsk plant will become one of the largest European ceramic flux producers .