Russian steelmaker Severstal has announced that it has acquired Ventall Steel Solutions and its assets in the Tula and Kaluga regions along with a complex in Cherepovets in order to increase its structural steel output.
With the three production facilities, the company expects to increase its structural steel capacity to 126,000 mt per year and plans to serve the commercial sector and the domestic oil and gas industry.
According to Severstal, 48,000 mt of the total capacity will come from Severstal Steel Solutions with the help of a capacity expansion project by 2025, while 48,000 mt will be produced by Ventall Steel Solutions, and the Cherepovets complex will provide the remaining 30,000 mt after the investment. The company plans to invest over RUB 1 billion ($11.27 million) in capacity renewal in Cherepovets. As part of the investment project, Severstal will renovate the infrastructure of the complex and will acquire and install new equipment that will allow the company to create a production chain along with existing units for the domestic oil and gas industry. After the investment and renovation project, the Cherepovets facility will be called Severstal Steel Structures and will specialize in cylindrical metal structures and heavy-welded I-beams.
“By increasing its competencies in the production of structures, our company is expanding its product line and strengthening its offer for various sectors of the Russian economy - civil and industrial construction, implementation of large-scale and complex infrastructure projects. We expect to gain synergies from our steel fabrication assets, each of which has its own volumes and types of products. Working as a single window for customers, we will be able to take a flexible approach to fulfilling orders - offering comprehensive solutions, choosing the optimal supply chains, and providing services that meet the most demanding customers,” Severstal CEO Alexander Shevelev stated.