Russia will build a new metallurgical plant

The Russian authorities will begin this year the construction of the Neivastal metallurgical plant in Alapaevsk, the press service of the government of the Sverdlovsk region reports.

The design capacity of the plant is 520,000 t/y of round steel and 290,000 t/y of grinding steel balls. The total investment in the project at the first stage is estimated at 20 billion rubles ($290 million). The plant will be based on an electric arc furnace and will employ 1,200 people.

The work is planned to be launched in two phases. First, a ball-rolling shop will be put into operation, raw materials for which will be purchased from third-party suppliers. After the launch of the EAF, Neivastal will process its own billet production.

According to the signed agreement, the enterprise will be built on the territory of the special economic zone, which is supposed to be created in Alapaevsk.

In December, Russia approved a new strategy for the development of the country's steel industry until 2030 (see Callanish's passim). The strategy is mainly aimed at stimulating Russian infrastructure and exports to Asia.

The authorities announced initiatives to increase the supply of raw materials, housing construction, upgrading public infrastructure and expanding road construction.

The Ministry of Industry and Trade believes that companies will adapt to the sanctions for another two years, and in the remaining five years, reorient logistics and enter new markets.

According to the worldsteel forecast in October, steel consumption in Russia will decrease by 6% year-on-year in 2022 to 41.3 million tons and by another 10% this year to 37.2 million tons.