Novolipetsk Steel announced that it has entered into a contract with SMS Demag, the German company, to acquire a one stand reversing cold-rolling mill. The mill has an annual capacity of 350,000 tonnes, and the contract is worth over EUR 29 million. The new equipment will be supplied within five months.

According to the report, the facility is designed to process strips of high-strength carbon steels and will ensure production of a new steel product applicable in the automotive and construction industries.

The release added that the mill installation at the site in Lipetsk is scheduled for 2011 as part of Phase 2 of NLMK’s Technical Upgrading Program.

The main objectives of Phase 2 of NLMK’s Technical Upgrading Program for 2007 to 2011 include
1. Increase crude steel output from 9 to 12.4 million tonnes per annum.
2. 100% self-sufficiency in key raw materials.
3. Higher finished flats output from 5 to 9.5 million tonnes per annum as a result the refurbishment of NLMK’s existing rolling facilities and the acquisition of new rolling assets.

NLMK said that total investments into the 2nd stage of NLMK’s Technical Upgrading Program will exceed USD4.0 billion by 2011.