The new project is aimed at keeping the assortment and output of high quality section steel after closing of the blast furnace and launch of the continuous casting machine put to operation in July of 2002.

Severstal is to build a new line with a capacity of over 200 tonnes an hour using Mill 350' equipment as a basis. The line will be used for rerolling of continuously cast billets of a square shape and a diameter of 150 mm from quality grades of steel into square shaped section steel of 100 mm in diameter for mills 150, 250 and 350.    The line will be built with view to maintain and increase the share of high value added products and meet demands of key customers - CHSPZ, car-making and machine-building plants in need for bearing and spring steels with special qualities. After the new line begins operating at its full capacity, it is expected to pay back in half years

The existing mill will be adjusted to rolling of section steel made at the new continuos casting machine through partial modernizing of existing capacities and maintaining of main equipment units, including rolling cages and stoves. These jobs will be done by VNIIMETMASH (Kolpino). This company was the only tender participant who didn't suggest construction of additional rolling cages, could be quickly implemented and was cost saving.

70% of equipment for the new line is made by Severstalmash-Tyazhmash. Other equipment will be supplied by machine-building companies of Cherepovets, Vologda region and Belorussia.

The project began in February of 2002 and will be completed by November of 2002. The new continuous casting machine's capacity is 1.200 million tonnes a year. Up to 25% of this volume will be cast in squares of 150 mm.