Krasny Oktyabr, Russia Metals and Mining
The electric steel making furnace #5 was put into operation at the electric steel making shop #2 of the Volgograd metallurgical plant “Krasny Octyabr”. Currently the electric steel making shop #2 is preparing for new volumes: the furnace is working in a stable mode, that allows to hope to reach the planned rates by the end of June.
Due to the absence of the correction of the production plan, as of June 27th the reduction of steel making made up 2,304 tons.
The electric steel making capacity is represented by 2 the electric steel making shops. The electric steel making shop #2 has 2 arc steel making furnaces of the average capacity of 130 tons.
The Volgograd metallurgical plant “Krasny Octyabr” is one of the largest producers of high-quality rolled products of special steel marks. In 2016 the enterprise celebrates its 118th anniversary.
Krasny Octyabr ships about 60% of produced goods to the domestic market, the main stake of rolled products is shipped to the pipe enterprises, 40% - is exported. The key countries are Spain, Italy, Germany, France and Belgium.
The Volgograd metallurgical plant “Krasny Octyabr” (Red October) goes on the program of technical retooling and gets ready to launch new furnace equipment. 5 batch furnaces BOSIO (Slovenia) are ready for start-up and commissioning works at the rolled products finishing shop.
Thermal gas furnaces #4, 5, 7 and 8 will soon be added to batch low-temperature burning furnace #1 and 2 batch furnaces with forced cooling #2 and 3 which have been actively used since August 2015. When they are put into operation, another 8 old furnaces will be dismantled and new furnaces will be installed: there are all the necessary equipment and materials at the enterprise. Currently the assembly of the water conduct is held.
The assembly works at the plate shop are coming to the end – a new thermal hardening batch furnace PP-K-6/1200 BOSIO is being installed. The start-up and commissioning works at the new equipment will start in late June. 2 burning furnaces PP-KZA-26/900 BOSIO are ready for start-up and commissioning works since April.
According to rankings, compiled by the RBC, 14 representatives of the steel industry were included in the number of 500 largest Russian companies.
The largest steel company in terms of revenues, according to the agency, became Evraz. In 2014, its revenue increased by 9% to 502 billion rubles. The company’s loss grew to 49 billion rubles, and the number of employees decreased by 10% to 93.7 thousand people.
The Volgograd Steel Works “Krasny Oktyabr” continues the program of technical re-equipment of the metal-roll dressing workshop. Three new furnaces BOSIO (Slovenia) have been put into operation within the frame of the programme.
On June 25th, the rolling plant of Volgograd Steel Works of Krasny Oktyabr launched an upgraded sheet cold rolling mill 1600. The opening ceremony was attended by the plant’s general director Valery Yavetsky, the deputy general director for sales Roman Modzgvrishvili, the chairman of the Industry and Commerce Committee of the Volgograd region’s Administration Roman Bekov, as well as representatives of the aviation and space industry - potential consumers of the new products of Krasny Oktyabr from Moscow, St. Petersburg, Kazan, Nizhny Novgorod, the Orel and Yaroslavl region, Kazan, Samara, Chelyabinsk and other Russian regions.
State-owned corporation Rostec and company RT-Capital, controlled by it, have received the right to appeal the decision of the London court to put them as defendants on the suit of the London branch of the Austrian Erste Group Bank AG (Erste), one of the creditors of the bankrupt Volgograd metallurgical plant Krasny Oktyabr.
The Volgograd plant was granted a loan for $80 million in accordance with the contract dated 2007. One of the creditors was Erste, the court documents state. However, the terms of payment in the amount of 1.66 million expired in July 2009, the debtor didn’t fulfilled its obligations. Erste claims that this was made intentionally, in collusion between Rostec and other defendants, controlled by the state-owned corporation in order to deprive the borrower and the guarantor on the loan of assets and to announce their insolvency.
The Volgograd Iron-and-Steel works “Krasny Oktyabr” will start manufacturing cold-rolled steel of up to 0.8 mm in thickness from stainless heat-resistant steel grades. The output of this product has been frozen for the last 20 years, the press-service of the company states.
Within the framework of the project, there will be repaired the mill “1600”. It was put in operation in 1947 and conserved in 1995. The repair operation has already started.
Loss-making steel plant Zelezara Smederevo, which belongs to the Government of Serbia, continues to attract Russian investors. Following Uralvagonzavod, Krasny Oktyabr has been interested in the asset. But it offers to radically reduce production, keeping only capacities for special steels rolling. Analysts doubt that Belgrade will agree, as it will lead to layoffs.
The Volgograd metallurgical plant Krasny Oktyabr, which produces special steel, has applied for a tender for the sale of the Serbian steel plant Zelezara Smederevo (should be held in September), the company’s general director Dmitry Gerasimenko told the Kommersant. According to him, the plant exports about 30% of the 400 thousand tons per year to Europe, and the purchase of Zelezara will expand the range and increase its presence on the market. The plant has rolling mills for the production of flat cold-rolled and hot-rolled steel (over 50 thousand tons per month), they can be adapted for special steels rolling from Krasny Oktyabr’s billets. The Volgograd plant’s steel capacities can produce 60 thousand tons per month, not less than 20 thousand tons will be supplied to Zelezara. According to the top manager, this will reduce the costs in Russia.
The Volgograd metallurgical plant, Krasny Oktyabr has invested about 2.7 billion rubles into the Zlatous electrometallurgical plant (ZEMZ), the Kommersant reports with reference to the company's general director, Dmitry Gerasimenko.
"About 1.5 billion rubles were allocated for social payments - compensation for laid-off employees, as well as for the current staff. 1.2 billion rubles more were invested into current assets of the plant, "- said the head of the enterprise. Today, the complex ZEMZ is 100% loaded, the production of special steel makes up 6 thousand tons per month. The monthly cash turnover is 400-500 million rubles (excluding VAT).
There won’t be a sharp rise in the economy in the next few years. Nevertheless, perhaps, new long-term trends may appear on the Russian market by 2015-2016.
So, the priority for many Russian producers is the domestic market of rolled metal, the share of exports in the total output is reduced. The situation on the world market deteriorates for Russian steel companies, besides their foreign assets may be under threat of sanctions. Quite symptomatic can be called the recent statement of Severstal about possible sale of the remaining assets in the United States.