September 21, 2016

Severstal and Rutgers Group present joint venture at Cherepovets

21 September 2016, Cherepovets; Severstal and Rutgers Group (Belgium) announced a new joint venture: Rutgers Severtar.

The Rutgers Severtar facility will be built in place of the old coal-tar processing unit at Cherepovets Steel Mill’s coke production plant. Rutgers Group will own 65.3% of the facility, Severstal 34.7%.

The new facility has been developed with a number of technical improvements: its hi-tech equipment will process coal-tar (the by-product of coke production) more efficiently and with reduced environmental impact; automated control systems will reduce the risk of human error in the tar distillation process; and, exhaust systems will purify vapour and gas emissions, making the facility significantly more environmentally friendly.

During the ceremony, Vadim Germanov, CEO of Severstal’s Russian Steel division, said: “Rutgers Severtar will have the capacity to produce up to 300,000 tonnes per year of high quality product for the Russian and international markets. The new equipment uses a more efficient coal-tar distillation system, with four columns instead of one, which will improve the accuracy of tar fractionation. This will enable us to produce a considerably wider range of products.”

Gerry Sweeney, Chief Executive of Rain Carbon Inc. (parent company of Rutgers since 2013), said: “Rutgers Severtar will be essential to the strategic development of our companies.  Not only will this be the first Russian facility with coal-tar distillation for producing vacuum pitch, but it is being developed based on our 160 years of experience in coal product production and commitment to high ecological standards.”

Vacuum pitch, used in the production of nonferrous metals, electrodes, carbon and graphite, will be the facility’s primary product. Rutgers Severtar will also produce coal-tar oils for the production of technical carbon and components for plastic production and the construction industry. Severstal itself will be a customer of Rutgers Severtar. The coal-tar absorption oil supplied to Severstal will meet international standards and will enable Severstal to preserve coke-oven batteries more effectively.

The Rutgers Severtar facility will employ a workforce of 94 people, including 55 employees from the previous coal-tar processing unit.

During the official presentation at Cherepovets, a ceremonial tank-car of vacuum pitch was shipped to RUSAL, one of Cherepovets Steel Mill’s major clients.