OREANDA-NEWS. January 18, 2007. Russian holding ESTAR (Electric Steel of Russia) intends to invest more than RR7 bn ($288 mn) in its Novosibirsk Metallurgical Plant named after Kuzmin over the next 5 years. The funds will be spent on expansion and upgrade of the plant in the Western Siberia in 3 stages, said the ESTAR spokesperson to the Steel Business Briefing Information Agency.

The first stage will include construction of a steel plant with electric arc furnace which will enable Kuzmin plant to produce its own slabs for roll up. At the moment Kuzmin plant produces hot rolled and cold rolled strip products and seamless and welded tubes with diameter of up to 133 mm. Initial output of the steel plant will make up 550,000 tons per year, which will further grow to 700, tons per year.

At the second stage, Kuzmin plant plans to install new Steckel strip hot rolling mill to produce flat products of 1.5 m width. Capacity of the Steckel mill will be 650,000 tons per year. Existing old mill will be replaced with this one.

And lastly, Kuzmin plant is planning to build new production capacities to manufacture tubes of large diameter for oil and gas industry. Output will make up 250,000 tons of tubes per year.

In 2007 Novosibirsk Metallurgical Plant named after Kuzmin produced 31,040 tons of hot rolled sheet which is a 17% vs. 2006 (26.630 tons) and 7,392 tons of cold rolled sheet, which is a 19% vs. 2006 (6,225 tons), and 5,586 tons of cold rolled strip, which is a 16% increase vs. 2006 (4,802 tons).