RUTGERS SEVERTAR LLC will complete phase 1 construction work in December, 2012

RÜTGERS SEVERTAR LLC will complete phase 1 of the projected construction works in December 2012. According to the Project Steering Committee’s commissioning schedule, the pitch storage facility will be realized by December 2012.

RÜTGERS SEVERTAR is a Joint Venture between RÜTGERS Holding Germany GmbH and OAO Severstal with its headquarters in Cherepovets, Vologda region. The company, founded in March 2012, will set up production facilities for the processing of coal tar based on the coke production plant at the Cherepovets location in order to supply premium quality chemical raw materials to the international market. The main products to be produced from coal tar are pitch, naphthalene and technical oils.

In addition to a distillation plant for the raw material coal tar used to produce coal tar pitch and other chemical raw materials, facilities for processing technical oils and naphthalene are in preparation. The production facilities will feature state-of-the-art technology and comply with international environmental standards.

The pitch storage facility construction and assembly works are scheduled to be completed in December 2012. Phase 2 construction works are planned to be completed by end of 2013. In particular, a new tar distillation unit is to be constructed during phase 2.

Products
Coal tar pitch is used to produce anode paste for aluminum production, electrode and electrode rod production. Technical oils are used to produce carbon black (soot) which is further used as a strengthening agent for rubber and plastics industries. Being a good plasticizer, naphthalene is widely used in construction industry, particularly in concrete production.



RÜTGERS group is a leading producer of chemical raw materials from coal tar. The major shareholder is the European private investment company Triton.

Severstal is one of the world’s largest vertically integrated steel and mining companies, with assets in Russia, the USA, the Ukraine, Latvia, Poland, Italy, Liberia and Brazil. Severstal is listed on MICEX-RTS and the company’s GDRs are traded on the LSE. Severstal reported revenue of $13.573 million and EBITDA of $3.263 million in 2010. Severstal crude steel production in 2010 reached 14.7 million tons. www.severstal.com