Izhora Pipe Mill completes upgrade project worth over RUR 82M

OAO Severstal, one of the world’s leading vertically integrated steel and steel related mining companies, announces that its pipe production unit, the Izhora Pipe Mill (IPM), which specializes in the manufacture of large diameter pipes from strips produced by the Cherepovets Steel Mill, part of the Severstal Russian Steel Division is completing an upgrade project worth over 82 million rubles (US $2,8 million).

The project envisages installation of up to date equipment in 2012, which will help increase productive capacity, improve production quality and cut down expenses in the production of large-diameter pipes.

The large-scale upgrade project got underway in June 2011.

Capital repairs were made at the Izhora Pipe Mill in the autumn of 2011, providing the foundation for the installation of new equipment.

The final phase envisages the installation of new equipment produced by Bauhuis International B.V. (a Dutch entity).

Nikolai Skorokhvatov, CEO, the Izhora Pipe Mill commented: “The quality of large-diameter pipes and, consequently, trunk pipelines is a key component of the modern system for the supply of energy resources. The implementation of major oil and gas projects promotes the development of new programs in the sphere of modernization and technical renovation of the Izhora Pipe Mill.”

With a shot-blasting machine (a unit that treats pipes with ballizing for their subsequent cleaning: descaling, derusting, mat finishing) to be installed, it will possible to increase the efficiency of the internal coating section by 25%, and also reduce the consumption of high-priced oil used for lubricating an expander (a tool used to bring a pipe to its proper geometry). The new internal blowing unit will enable the internal pipe surface to be more efficiently treated, with dust and scale removed prior to painting. Besides, induction-heating machinery that will be installed will enable painted pipes to be dried quickly and to a good quality.