"In 2002, Severstal plans to reach the output of 8.4 million tonnes. We also have an opportunity to increase sales of rolled steel up to US $2 billion, which is a 4% increase over the previous year", said Anatoly Kruchinin, Severstal's general director at the press conference.

According to Anatoly Kruchinin, implementation of production and sales plans will depend upon fulfillment of several technical programs. First of all, it's the product development program. "Over 9 months of 2002 Severstal has mastered 51 new products, including 77,000 tonnes of rolled steel totaling 654.5 million rubles (over US $ 21  million) . Economic impact  from implementing this project totaled 117 million rubles (US $ 3.8 million)", said Anatoly Kruchinin.

Additionally, in order to assure planned output, the technical upgrading program remains a priority for the year 2002 up until 2005. Severstal's by-product-coke plant has one of the longest equipment service lives among by-product-coke plants in Russia and former CIS countries.

The by-product-coke plant reconstruction program, part of the overall technical upgrading program, incorporates activities to enhance the coke-oven batteries' state and raise their service lives up to 35 and even 47 years. Severstal has allocated US $ 1.2 million in 2002 and US $ 2 million in 2003 for these purposes. One variant of the by-product-coke plant capital assets upgrading program is estimated at US $ 92.5 million. It involves construction of the coke oven battery #3 and relaying of coke oven batteries #4 and #7. Preproject jobs of this variant are currently being done by GIPROKOKS (Kharkov).

According to Anatoly Kruchinin, over 9 months of 2002, as compared with the like period of 2001, the number of coke batteries' 'drillings' has dropped 1.5 times as compared with the like period of 2001. Positive results were also achieved in terms of coke drawing uniformity coefficient, which allowed exceeding coke production goals by 14,700 tonnes.

Besides that, in 2002 the plant had an experiment, important in terms of economic impact, product quality and minimizing consequences of the shortage of raw materials at the market.  Since February 2002, Severstal has been conducting experimental tests with view to substitute traditionally used charge coal with Kuznetsk charge coal. The experiment was conducted in 5 stages. At each stage one variant of Kuznetsk to Pechora coals ratio was tested. As a result of this experiment optimum coal charge for production of coke of the desire quality was chosen. According to the general director, total gain from implementing this project was 118 million rubles (US $ 3.8 million).