Rosneft proposes building metal plant for Zvezda shipyard
BOLSHOI KAMEN, Primorye. Sept 1 (Interfax) - Rosneft is proposing to build a metal production and metalwork complex whose products would be used at the Zvezda shipbuilding center in Russia's Far East, the head of the state oil major, Igor Sechin said at a meeting on shipbuilding that President Vladimir Putin is holding at Zvezda.
Putin proposed discussing supplies of rolled metal products to the shipyard, recalling that the amount of metalwork at Zvezda will total about 330,000 tonnes per year.
"It's very important that such large demand is covered primarily by Russian metallurgists. However, these supplies must make economic sense. It is necessary to take into account the shipping distance and other logistical particulars," Putin said, adding that the relevant ministries have been instructed to work out this issue.
"We are proposing to build a metalwork and metal production complex in close proximity to the shipyard," Sechin said, reporting proposals on this subject to the president. A site has already been selected about 100 km from Zvezda, next to a freight handling complex, he said.
"The proposal has been cleared with Deputy Prime Minister Dmitry Rogozin. We have prepared the corresponding application. We need a little help on processing the paperwork for this land - a parcel with an area of about 400 hectares," Sechin said.
The prepared proposal is to purchase a steel rolling complex, he said. "We're already looking for such a complex, there are already various options for acquisition, with subsequent rolling of steel sheet of the required format here," Sechin said.
He said that welding of small steel sheets in the process of shipbuilding "absolutely badly affects the production cost of ships - this is a price increase in the amount of up to 50% in the price of the hull and up to 10% overall for the finished product" and 10% is a very substantial amount "that reduces competitiveness."
Deputy Prime Minister Rogozin confirmed that he backed the project. He said the shipyard would "avoid lengthy logistics" if it were able to buy the necessary equipment and install it in close proximity. "Rosneft Rosneft has done the work and we support it," he said.