OREANDA-NEWS. On July 02, 2007 Ural Steel managed by Metalloinvest Management Company has completed the first stage of the $185 mln 2800 rolling mill modernization, which is a cornerstone project for plant’s development, reported the press-centre of Metalloinvest.

The upgrade will make hot-rolled plate production capacity up to 1,2 m tpy from the current 850,000 tpy.

The modernization of the mill is being carried out in the framework of a five-year development program of Metalloinvest, which envisages a $5 bln investment into the enterprises of the holding.

The mill modernization is a two-stage process. The first stage included preparatory work to install a four-high mill stand supplied by the German SMS Demag. This will allow for better production quality and output increase up to 100,000 tones monthly from the current figure of 65,000 - 70,000 tones, with 50% of the output being high grades of steel.

“The 2800 mill is the “heart” of the steelworks”, says Sergey Shishkovets, the managing director of Ural Steel. “Its production is responsible for 50% of the total profit of the enterprise. Upon completion of the modernization, the new mill will produce better plate, which is in strong demand by the market: the total output of the near future has been already booked by customers. The development program will provide for satisfying client needs, which guarantees successful future of Ural Steel.”

The second stage of the modernization is scheduled to the 4th quarter of 2007.