OJSC Tulachermet and SMS group signed a contract for 180 million euros

OJSC Tulachermet and SMS group signed a contract for the supply of metallurgical equipment. The cost of the order will be around 180 million euros. The contract was signed in Dusseldorf, Germany. The construction of a converter and rolling mills on the basis of a complex in the immediate vicinity of Tulachermet, located 200 km south of Moscow, was agreed.

Tulachermet will take over the project management and construction and installation works. Contracts for construction and installation works will be executed by Russian companies. The rolling mills will be designed for an annual capacity of 1.5 million tons at the first stage with the possibility of increasing in the future to 2 million tons. Most of the products will be supplied to Moscow and other regions of Central Russia. The demand for quality metal products primarily comes from the construction industry, mechanical engineering and automotive companies.

The steel production and rolling mill complex will be commissioned in 2016. SMS Siemag will supply equipment for the converter shop. The production will be equipped with electrostatic precipitators from SMS Elex. SMS Siemag will also supply energy recovery systems. To further optimize energy efficiency, SMS Siemag is able to recover converter gas for subsequent gas flaring in the existing Tulachermet power plant.

SMS Concast will supply a ladle furnace for the CCM. SMS Meer will supply section mills for the production of quality steel in the form of bar and wire rod. SMS group will also equip all production lines with electrical systems and automation.