Severgal

Severgal is Severstal’s 75 percent joint venture with Arcelor since 2001 and has a focus on high-quality galvanised auto body sheet products.

In commercial operation since December 2005, Severgal is a galvanising plant with a projected galvanising capacity of 400,000 tonnes per year. Russian Steel and Metalware’s total investment related to this plant was approximately US$210 million. Severgal can produce galvanised-steel sheet with a thickness of 0.4 to 2.0 millimetres and a width of 900 to 1,850 millimetres. Russian Steel and Metalware currently uses this plant to produce ExtragalTM steel sheet product coated with zinc-iron alloy and intends to begin production of Galvallia steel. Severgal’s production for the first half of 2006 was approximately 87,600 tonnes.

Severgal is strategically located close to several major domestic automotive greenfields, including Nissan and Toyota in St. Petersburg, with estimated project units of 50,000 each in 2008, and Volkswagen in Kaluga, with estimated project units of 115,000 in 2007.