According to Vadim Makhov, the Chairman of the Board of Directors of Severgal, most jobs of creating a new line will be done by three companies. Having considered several offers, Severgal team has chosen CMI (Belgium) as a supplier of equipment for the new line. The choice was justified by the success of a previous contract of Severstal with this company. In 2001, CMI provided Severstal with equipment for reconstruction of a continuous hot aluminizing device, designed for production of rolled steel with ? alumo-siliceous coating for the automotive industry. Russian automotive industry needs 35,000 tones of this product a year. Due to high corrosion-resisting characteristics the new product is used in the make up of exhaust pipes and fuel tanks of automobiles. First 400 tones of this product were shipped to Volgsk Automotive and Ulyianovsk Automotive plants in July 2002.

The contract for engineering of a new line including its infrastructure was signed with Lengirpomez, while its construction and assembly were commissioned to Cherepovets company Metallurgremont.

Additionally, the shareholders meeting has approved agreements, designed within the framework of the General Agreement on Construction of a Hot Dip Galvanizing Line, signed in September of 2001 by Severstal and Usinor. They are Extragal Technology Agreement, Basic Design Agreement and Agreement on Consulting Services.

Alexey Mordashov, Severstal's general director, and Francis Mer, the Chairman of the Board of Directors of Arcelor, have announced of creating a joint venture for production of hot dip galvanizing sheet for the automotive industry on 19 April, 2002 in Cherepovets (Vologda region). Severgal was registered in the Russian Federation. 75% of the joint venture is owned by Severstal, 25% by Arcelor. The plant will be constructed at Severstal's industrial site by the beginning of 2004. The project costs including construction, staff training and marketing of product are US $ 180 million. Severgal will produce ExtragalTM for use in the interior and exterior parts of vehicles. The plants' capacity is 400,000 tones a year. Arcelor will provide the joint venture with the license for use of its proprietary product, including its trademark and associated know-how. ExtragalTM is a zinc coated hod dip product, developed specifically for the automotive industry. It is produced by Arcelor and by Dosol joint plant with Dofasco in Europe. From 2003 it will be produced at Vega do Sol plant in Brazil.