Severstal to increase investment into main capital in 2016
The investment into Severstal Russia Steel will make up about 25.6 bln roubles, 15.2 bln of which will be spent for the development projects. Among the main investment projects of the division are the construction of a complex for metal coating and the second ladle furnace, modernization of the cold rolling mill-1700 at CherMK. It is planned to spend 10.4 bln roubles for the support of the existing capacities and improvement of the system of industrial safety of the division.
The investment into the resource enterprises in 2016 will make up about 17 bln roubles, about 7 bln of which will go for production development. The major part of this amount will go for the expansion of the volume of mining works at the resource assets of the company. It is planned to spend 10 bln roubles for the support of the existing capacities and improvement of the system of industrial safety of the resource enterprises.
Severstal keeps sticking to a moderate approach to investing. The potential for growth can primarily be seen in the initiatives in the sphere of production efficiency rise, prime cost reduction, improvement of quality of rendered services and quality of final products. Such projects as the construction of the unit for metal coating allow us to increase the stake of products with high added value in the general structure of sales, deputy CEO for finance and economy of Severstal Management, A. Kulichenko said.
