Making comments on the fact, Mr. Anatoly N.Kruchinin, Severstal's General director, has noted, that the volume of the investments funded reached Rbls. 13.2 milliard.
The company has assigned the whole volume of the investments to support the business strategy development, namely, the elaboration of new types of products and the improvement of consumer properties of steel rolled products, as well as the realization of programs intended for the production increase and the development of power-generating and IT facilities.

As Mr.Anatoly Kruchinin noted, the company has continued the implementation of large investment projects for the purpose of developing new products and improving consumer properties of the steel rolled products. The projects include the development of the plate production in Rolling Shop1, "Semifinished rolled products for JV Severgal" comprehensive program, which involves the implementation of 32 actions covering all the stages of the rolled products manufacture for Severgal, and the construction of the Polymer Coating Shop. The level of the funds allocated and spent for the construction of the Polymer Coating Shop, went beyond the annual target and made as much as Rbls 1.6 milliard. Furthermore, during the last year the company initiated a number of new projects, such as the construction of Small Diameter Tube-Rolling Mill in the existing Cold Roll-Formed Section Shop.

As Mr. Anatoly Kruchinin says, in order to increase the production, Severstal has been implementing Blast Furnace ?4 revamp project in the Blast Furnace Shop. Besides, in order to build up the production potential in view of the new products manufacture (first of all steel rolled products with polymeric coatings and hot-dip galvanized sheet for automotive industry), the steel company is implementing the investment projects aimed at the increase of the BOF steel output up to 9.5 mln. tons per annual and the EAF steel output up to 2.1 mln. tons per year. At the same time, in BOF Shop the investments were made into the improvement of quality characteristics for such new steels as IF-steel.

As Severstal's General director noted, a number of the actions completed in the previous year, have already given positive effect. In 2004, in conformity with the pre-planned schedule, the steel company has increased the output of rolled products by 5.5 % as compared to 2003; the shipment of new types of products has increased by 80 %.

According to General director, in 2005, JSC "Severstal" plans to increase the volume of its investment portofolio. "We are going to strengthen investments to the basic directions: to the projects intended for the products' output increase, expansion of the products' range, provision of efficient operational conditions of the majour production facilities. In particular, in 2005 we shall put into operation the slab producing line in Electric Steelmelting Shop, that incorporates new shaft furnace Fuchs, ladle-furnace, and reconstruction of Concast ?2 in BOF Shop with the productivity increase up to 2.5 mln.tons of steel per annual, including the increase of IF-steel output. Besides, we plan to commission Coke Battery ? 3 in order to maintain the appropriate coke balance in view of the planned hot metal output growth. "The investments into the company's social programs shall be increased as well," - said Mr.Anatoly Kruchinin.