For reference: Polymeric Coating Line is designed for producing hot-dip galvanized sheets with colour coating, thickness 0.3 to 2 mm, width up to 1650 mm, 200 thousand t annual production. Building of the new shop is a major investment project with total budget exceeding three billion roubles. This project will enable Severstal to create dozens of new working places, as the new shop's staff will be more than 200 people.

Commenting on this eve?t, JSC Severstal General Director A.N. Kruchinin pointed out that "start-up of the new shop is another step forward in implementing the Company's strategy of manufacturing high added value products. Today the capacity of internal market for galvanized polymeric coated sheets is almost 700 thousand t. Our colleagues from Lipetsk and Magnitogorsk cover about 50% of the market needs, whereas almost 230 thousand t of galvanized colour coated steel are imported by Russian building industry. Therefore, we will increase the share of the internal market by replacing imported products. According to the forecasts, internal market capacity growth is expected in future, due to increasing use of materials lined with polymeric coated steel in building industry".

Rolled products parameters, as well as equipment features, making it possible to coat steel with any polymeric materials produced by world industry, allow JSC Severstal to enter several markets with the new product, including building and household appliances sectors.

Galvanized sheets manufactured at both Severstal Cold Rolling Plant (PKhL) and ZAO Severgal, a joint venture between JSC Severstal and European group Arcelor, will be used as entry products for the polymeric coating line.

The quality of the product manufactured at the new Cherepovets production line will represent one more positive feature. In parallel with the new shop building work, JSC Severstal carried out modernization of all the Cold Rolling Plant galvanized sheets production chain. Besides, the exclusiveness of JV Severgal technologies will be applied to polymeric production as well. According to the calculations, the newest technology combined with modern galvanizing will make the new Severstal product highly competitive - and not only on the internal market. The Company's intended goal is to maximize sales on the internal market, whereas polymeric coating steel products are planned for export as well.

For reference: Main process equipment is supplied by SMS Demag (Germany). General building contractor is JSC "Korporatsiya "Montazhspetsstroy", general designer is ??? "Severstal-Proyekt".