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Tula-Steel announces completion of its tender procedure to choose an equipment supplier

21 February 2014

Tula-Steel Company (OOO Tulachermet-Steel, a Russian company established by a number of investors with participation of KOKS Group) announces the results of its tender procedure to choose a supplier of equipment for its new steel melting and rolling plant.

On February 6, 2014 Tula-Steel announced the results of its tender procedure to choose a supplier of equipment for its new steel melting and rolling plant to be constructed in close proximity to the OAO Tulachermet production facilities. The project includes construction of a steel-melting shop and of two rolling mills for long products. Most of feedstock for the steel plant will be hot pig iron produced by Tulachermet. The new asset may become one of the leading suppliers of rolled products for the Central Russia’s machine building, automotive and construction companies. The plant will also be able to supply a number of unique types of rolled products for such industries.

The main equipment of the steel melting and rolling complex will be supplied by the SMS group, including the 160 t BOF with lamella suspension system supplied by SMS Siemag. The steel melting plant will be equipped with a state-of-the-art dedusting plant with electrostatic filters and an energy recovery system from SMS Elex. For further optimization of production with regard to energy efficiency, a converter-gas collecting and mixing system for subsequent combustion in the existing OAO Tulachermet power plant can be provided. SMS Concast will deliver one twin-ladle furnace and one vacuum degasser for secondary refining, as well as one 6-strand billet caster with CONVEX® technology for casting 150×150 — 180×180 mm squares. A 160 t/h walking-beam furnace from SMS Meer will supply the billets for two nearly identical SMS Meer light-section mills. One of these mills will be equipped with a wire rod line which enables the production of high-gradesteel-wire rod of 4.5 mm and above in diameter. The production capacity of the two rolling mills will amount to 1.5 million tons per year and can be increased up to 2 million tons per year. All production lines will be equipped with electrical and automation systems of the SMS group.

The general operating manager of the steel project is the Tula-Steel Company (OOO Tulachermet-Steel, a Russia-based company established by a number of investors with participation of KOKS Group).

With the steel plant successfully commissioned, KOKS Group will achieve stable consumption of its pig iron on the domestic market. KOKS Group is the world’s leader in merchant pig iron production and Russia’s leader in merchant coke production. In addition, the Group includes a number of quality coking coal and iron ore mining and processing assets.

At present time, the construction site for the new mill is being prepared near to Tulachermet operating facilities. The preparation of the site is scheduled to be completed by May of this year. The steel melting and rolling plant will be put into operation in late 2016.

The Tula-Steel Project includes construction of a converter-based steel melting and rolling mill at the Tulachermet plant’s production site. The production capacity of the mill’s first stage will be 1.5 million tons p.a. of long rolled products. The bulk of the output will be supplied to the Moscow area and to other districts of the Central Federal Region of Russia, where the plant’s management considers to be most of Russia’s steady demand for high-quality steel products from the construction, engineering, metalware, and automotive sectors. Tula-Steel (OOO Tulachermet-Steel, a Russian company established by a number of investors with participation of KOKS Group) is the general operator of the project, being in charge of all activities relating to the steel mill construction works. The fund-raising structure of the project is still under consideration but most likely it is to be project financing from major banks. The complex is expected to be put into operation by the end of 2016.

ОАО Tulachermet (part of the KOKS Group) is the world’s largest producer and exporter of merchant pig iron for the steel and foundry industries. It is located 200 km south of Moscow, in the city of Tula. The plant’s annual output is currently around 2.2 million tons of merchant pig iron. The production capacity of the plant will be increased up to 2.8 million tons of pig iron p.a. by 2017 after the reconstruction of Blast Furnace No.1 is completed. The Tulachermet clientele includes major steel and foundry companies in North America, Europe and Asia. The quality management system of the facility is certified under the ISO 9001:2008 standard.

The SMS group, under the roof of SMS Holding GmbH, is a group of global players in machinery and plant construction for the steel and nonferrous metals processing industries. Its workforce of more than 13,500 employees generates sales worldwide totaling EUR 3.3 billion.

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