In 2002, Severstal’s employees worked on 10 target projects, aimed at mastering new products for key target customers in the target industries such as automotive, ship-building, gas and oil, and wire products. “Mastering of new products gave 324.2 million rubles in profits,” said Alexander Stepanov, technical director of Severstal at a press-conference.

The project of mastering highly durable grades of steel for key target customers such as Sevmashpredpriyatye was one of the most important projects done to increase sales to the ship-building industry. This has allowed to increase stock of orders for these grades of steel by 5,000 tonnes.

In 2002, Severstal has completed work to produce rolled stock to assure increased reliability of oil pipelines in Russia. Vyksa Metallurgical Plant had asked to develop technology of producing low alloyed steel for corrosion resistant and cold resistant pipes made by high frequency welding. Regular shipments of rolled steel and pipes to Vyksa began in July 2002. From July to December Severstal produced and shipped 9,592 tonnes of rolled steel. New technology of making the X65 steel was developed. This technology was used to make 20,000 tones of rolled stock for a gas pipeline in the Apsheron peninsula.

A number of projects deal with production of new items and use the IF steel for the automotive industry. First of all, it’s developing automotive sheet with alumosiliceous coating. In 2002, the company produced over 2,000 tonnes of this steel and shipped this product in form of test lots to all automotive plants and a number of service centers, which make components for further treatment at the plants. According to Alexander Stepanov, positive feedback came from Volgsk Automotive Plant. Now Severstal is preparing for regular shipments of steel with alumosiliceous coating to this plant, which will be used in the make up of gas tanks and gas exhaust systems.

“We are also involved in mastering of hot rolled pickled steel of the IF grade, which will, replace cold rolled steel. This is particularly important for the car-makers as they can replace expensive metal with a cheaper product of a similar durability,” said Stepanov.

06 Febrary 2003