Alexei Mordashov, head of Severstal group, signed a strategic development plan and a business plan of Cherepovets Steel Rolling plant.

Within the next five years Cherepovets Steel Rolling plant plans to increase sales to US $ 300 million compared with US $ 167 million in 2001. As a result EBIT is expected to increase to US $44 million as compared with US $ 21 million in 2001.

According to Sergei Sokolov, general director of Cherepovets Steel Rolling Plant, in spite of the difficulties, experienced by companies, producing metal products, Cherepovets Steel Rolling Plant was able to maintain profitability from 2000 to 2001. In 2001, the plant produced 492,000 tonnes of metal products for US $ 160 million - an overall increase in production of 4.7%.

In 2001, 200 million rubles were invested in the plant. In 2002, investment is planned to be 160 million rubles. Most investment will be in drawing and coiling equipment in the wire shop #2, and, a shot blaster and a coil wrapper line in the calibrating shop.

In 2002, the plant plans to increase production output to 554,000 tonnes. This year Cherepovets Steel Rolling Plant will complete the implementing of new information technology (BAAN), which will generate US $ 10 million in savings over the next five years.