NLMK to Pursue Production of High Permeability Transformer Steel

NLMK Group is going ahead with its plans to master the production of high permeability transformer steel (HPS). Its fully owned subsidiary based in the Urals, VIZ-Stal, is planning to launch a 70,000 tpa HPS facility by 2014. The Company has started the reconstruction of its two decarburizing annealing lines in order to set up a process flow for mastering the production of premium transformer steel.

The project is being implemented jointly with LOI Thermprocess (Germany). Its overall cost is expected to be approximately RUR2.4 billion. The plan for 2011 comprises the engineering of the new line and the dismantling of the existing equipment. Startup of the furnace is scheduled for 2013.

As part of the project, VIZ-Stal has also started the construction of a reversing cold-rolling mill with an annual capacity of 75,000 tonnes. The new rolling complex will replace the old dismantled mill in the existing cold-rolling shop.

The construction of the reversing cold-rolling mill is to be finalized before the end of this year. The project will cost around RUR1.4 billion and is being performed in association with Andritz-Sundwig (Germany).

As a result of these large-scale upgrades at VIZ-Stal, NLMK Group will be able to expand its high-permeability transformer steel production capacity from 60,000 tpa (at the main production site in Lipetsk) to 130,000 tpa.

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