Geopolitical Advantages of Russia to Facilitate Development of Steel-Making Equipment Market in Second Decade of XXI Century

Despite the economical difficulties the equipment market has a good potential. A. Romanov, Co-Chairman of the Organizing Committee of Metal-Expo’2009, International Industrial Exhibition, due to the financial crisis the capacity of the Russian equipment market has reduced considerably. However, the market is still there, and in 2010-2020 it will have a good potential to grow. A. Romanov gives a few examples:
In July Magnitogorsk Iron and Steel Works (MMK) is putting mill 5000 and a new coating line into operation. This is just one of the MMK investment projects. The Works still continues modernization of its facilities. Above all the modernization program includes building of the cold rolling mill and some new lines. In the next few years Severstal will not just reconstruct its facilities, but most likely will fulfill its projects on building of electric steel melting facilities in Saratov and Ivanovo in 2012-2020. As part of its diversification program, Novolipetsk Steel (NLMK) has become a stockholder of Maxi-Group planning to fulfill in the next few years a number of projects on long products manufacture which have not been completed by the previous owners. The program includes building of Kaluga Electric Steel Plant during the next 3 years. NLMK Group also plans to develop its long products facilities in the nearest future. Despite the financial difficulties Mechel Group has recently signed a cooperation agreement with Russian Railways planning to build a new railway plant on the facilities of Chelyabinsk Iron and Steel Works. The total weight of all the required equipment will reach tens of thousands of tons.
Now Russian tubes and pipes companies also fulfill a number of serious investment projects including. In the next two years ChTPZ Group plans to complete building of big diameter pipes mill in Chelyabinsk and electric steel melting complex in Pervouralsk. In the next 3 years United Metallurgical Company (OMK) will complete modernization of Chusovoy Steel Works and build mill 5000 in Vyksa. During the next few years Pipe Metallurgical Company (TMK) will continue modernization of its electric and metallurgical facilities and most likely will launch rolled products manufacture on the electric and metallurgical facilities. This project may be fulfilled in Taganrog. Urals Pipe Works has also chosen the way of independent supplies with billets and strips announcing last summer the project on building of highly productive plate and sheet mill in Pervouralsk in the next 2-3 years.
Evraz Group has also shown serious intentions of launching new projects. RusSpetsStal, for example, after consolidation of some assets may extend the steel making facilities it will incorporate in 2010-2015. Further process of consolidation of steel industry will most likely stir up Russian equipment market. Stirring up of merging and acquisition processes will most likely be registered in 2012-2017 due to projects of some holdings such as Russian Steel incorporating NLMK, Evraz Group, TMK, Tulachermet etc.
However, the Russian Federation possessing more than 40% of the world stock of iron ores, cocking coals, hydrocarbons, electric power, let alone undeveloped rich deposits of iron ores and coal in the Eastern Siberia and the Far East as well as other resources needed for steel making will become interesting to many investors in the next decade of the XXI century as a place to set up and develop new steel making facilities.
Major projects such as foundation of Boguchansk and development of Udokansk are fulfilled and will be fulfilled in the aluminium and copper industries.
All in all, the Russian steel industry has a good potential making producers of various equipment for steel industry and further metal processing regards future with optimism. Even now some farseeing market players are gaining the place under the sun in the Russia market: reportedly annual turnovers in the Russia market of such leading companies as Siemens and SMS Group exceed $1 billion. Russia accounts for a major share of supplies of Novokramatorsk Machine-Building Works, the largest in the CIS producer of mining and steel-making equipment and a regular exhibitor of Metal-Expo International Industrial Exhibition in Moscow.
Many steel making equipment producers from the CIS and all over the world consider Metal-Expo a springboard for business development. Major suppliers of steel-making equipment and engineering solutions for steel industry plan their participation in Metal-Expo’2009. Besides, the international forum is endorsed by METALLURGMASH, International Union Metallurgical Equipment Producers and all its members.