Posted on 19 Jan 2023
Russian authorities will begin this year the construction of the Neivastal metallurgical enterprise in Alapaevsk, reports the press service of the government of the Sverdlovsk region.
The design capacity of the plant is 520,000 tonnes/year of round steel billet and 290,000 t/y of grinding steel balls, Kallanish notes. Total investment in the project at the first stage is estimated at RUB 20 billion ($290 million). The plant will be electric arc furnace based and employ 1,200 workers.
The works plans to launch in two stages. First, a ball-rolling shop will be put into operation, for which billet feedstock will be sourced from external suppliers. After the launch of the EAF, Neivastal will process its captive billet production.
According to the signed agreement, the enterprise will be built on the territory of the special economic zone that is supposed to be created in Alapaevsk.
In December, Russia approved the new strategy for the development of the metallurgical industry of the country until 2030 (see Kallanish passim). The strategy mostly eyes Russian infrastructure stimulation and exports to Asia.
Authorities announced initiatives to increase raw material supply, housing construction, modernise communal infrastructure, and expand road construction.
The Ministry of Industry and Trade believe that companies will adapt to sanctions for another two years, and in the remaining five years they will reorient logistics and enter new markets.
Russia’s steel consumption was forecasted by worldsteel in October to decline by 6% on-year in 2022 to 41.3 million tonnes and by another 10% this year to 37.2mt.
Source:Kallanish
