This Austrian company will be a chief designer and supplier of equipment for computer assisted heating of metal.

A contract for design and shipment of the computer assisted manufacturing system was signed by Severstal and Fiest Alpine at the end of last year. This has happened after this Austrian company won a bid among a number of foreign and Russian companies, specialized in making of modern computer assisted manufacturing systems. The system suggested by the Austrians has some advantages in terms of value for money, ease of use and ease of service.

Fiest Alpine warrants reaching a number of important indicators, which will raise the production capacity, improve the quality of products, lower manufacturing costs, and negative environmental influences.

The expected high quality of products will be reached by even heating of metal, and minimum (up to 7 degrees) fluctuation of the slab temperature from a given figure while rerolling it into the end product.

In temperature cycle, provided by the computer assisted manufacturing system the rate of use of heat is 10-15% lower, and metal waste is 0.8% as compared with the present 2%, thus increasing output of end product. Waste is reduced and fuel is burnt completely.

The new computer assisted manufacturing system is just the first step in technical up-grading of the furnace unit, which was in operation since 1975. A switch to a new system will be accompanied by reconstruction of all 4 heating furnaces, which will increase effective volumes of furnaces by using a thinner lining. As a result, the capacity of each of the four devices will raise up to 400 tonnes an hour.

In 2003, as part of the project, Fiest Alpine will complete design and construction of the

computer assisted manufacturing system at Severstal. It will undergo integrated testing in Austria and will be shipped to Severstal. Mounting of one of the furnaces is expected in the 2 quarter of 2004, other devices will be switched to the new system by the beginning of 2006. Upgrading of all furnaces, including management systems replacements, total US $ 25 million.

31 January 2003