The objective of this project, which is expected cost about Rbs 160 million and have a payback of three years, is to increase product quality and increase volumes of coated rolled products for the automobile, construction and white goods industries from 290,000 to 320,000 tonnes per annum.

Within the framework of this project, which is expected to be completed during the first quarter of 2004, Severstal will install equipment for the electrostatic coating of high quality oils (such as 'Ferrocoat') in the continuous hot dip zinc-aluminium coating line.  This equipment will supply a uniform coating layer of protective oil that will protect the metal from corrosion and safeguard the consumer properties of the galvanized steels - especially during maritime transport.  This equipment will be supplied and installed by JSJ Peabody of the USA.

Within this project the installation of a whole complex of equipment is planned, which includes a crystallizer for patternless coating of metal and gas knives.  This installation will increase quality and consumer properties of hot dip galvanised steels and extend their useful working lives.

In the words of Dmitry Goroshkov 'during the first half of 2004, with the completion of this project and the start-up of 'SeverGal' (manufacturing galvanized automobile sheet steels) our customers will receive the best galvanized steels in the country.'

21 August 2003