As part of a large scale modernization program of the Mill 5000 in Kolpino, Leningrad region, in the six months of 2002 Severstal put 4 new units to operation, which has required already 539,761,000 rubles. They include a new shop span with two metal finishing units - plasma-gaseous cutting machines and an ultrasound control device.

In the remaining six months the broad band mill itself will be modernized with the construction of three new units, which will allow to improve the quality of finished product. The new equipment units include an accelerated cooling device, which will begin operating at the end of September. In August, the assembly of sheet-straighteners will begin and will be finished in October of 2002. In September, the assembly of a new ultrasound control device will begin, as it is expected to begin operation in October.

New equipment will allow to significantly expand the product line of the Mill 5000 for Severstal's key customers - ship building and gas and oil industry. In particularly, putting to operation of an accelerated cooling device will allow to increase the range of graded stock 1.5 times up to 25 various grades of ship building steel.

Over 7 months of 2002 Mill 5000 sold 65,700 tones of stock. In July, sales have grown 2.5 times up from January, reaching 12,100 tones. Over seven months of 2002 sales increased by 142% as compared with the corresponding period of 2001. Steel for shi building makes up 6% of Mill 5000 sales, Sevmashpredpriyatiye (Severodvinsk) being its largest customer.