2 Feb 2023 15:16

Severstal plans for capex of $1.1 bln in 2023 - company

MOSCOW. Feb 2 (Interfax) - Severstal plans for investments of $1.1 billion in 2023, with $544 million to be allocated to projects for maintaining existing capacities, the company said in a statement.

"Severstal continues to implement large-scale projects that have been launched, and which help us maintain leadership in terms of production costs among competitors, as well as to enter new sales markets and niches," CEO Alexander Shevelev was quoted as saying in the statement. "According to our plans, capex in 2023 should be comparable to last year's investments," the CEO said.

The company intends to allocate $449 million to development projects this year; an additional $135 million will be invested in information technology, production digitalization, ecology, improving industrial safety systems and labor protection.

Most of the company's investment program is denominated in rubles, but the announced investment amount may be adjusted if the economic situation changes, the report says.

As reported, the initial guidance for Severstal's capex in 2022 was $1.6 billion. Severstal's capex was $1.157 billion in 2021, down 13% from 2020.

Severstal also said Thursday that it had approved a sustainable development strategy through 2030 and reaffirmed its previously announced goals to reduce greenhouse gas emissions 10% from 2020 levels by 2030, as well as emissions of pollutants into the atmosphere by 13% from 2017 levels by 2025.