A EUR 25 million supply contract between OJSC MMK (Magnitogorsk Iron and Steel Works) and the German steel production technology specialist SMS for the supply of a 360kt continuous galvanising line has been concluded, claims the Russian steelmaker.
It is expected that the first coil of galvanised steel will be rolled in two years and that SMS will supply the required equipment, spare parts and technical documentation in addition to training and programming services, the supervision of plant erection and preparation for commissioning.
The new line will be constructed at MMK’s strip rolling plant 11. The site accommodates a state-of-the-art cold rolling complex designed to output cold-rolled hot-dip galvanised products for the construction industry.
MMK hopes to increase its galvanised cold-rolled products capacity by 20% once the new line is up and running and create 70 new jobs in the process.
It is hoped that the new line will enable the Russian market for galvanised rolled products to reduce it’s reliance upon imports, which currently account for 25% of the market. With a market capacity of 3.3Mt, 0.8Mt are accounted for by imports, claims MMK.
SMS and MMK have enjoyed a fruitful relationship over the past 80 years.