10 Jan 2024 13:16

Severstal buys some of Ventall's assets for production of metal structures, will increase their production to 126,000 tonnes/year

MOSCOW. Jan 10 (Interfax) - Severstal has acquired two assets from the Ventall company in the Kaluga and Tula regions, as well as a production complex in Cherepovets (Vologda region), Severstal said in a statement.

The combined capacity of the three assets will allow the company to achieve metal structures production volumes of 126,000 tonnes per year. Of this volume, 48,000 tonnes will be produced by Severstal Steel Solutions, where there is an ongoing investment project to expand capacity by 2025, 48,000 tonnes will come from Ventall Steel Solutions, and another 30,000 tonnes will be produced at the complex in Cherepovets after certain investment measures are completed.

The bulk of Ventall Steel Solutions' production will be aimed at the Russian domestic market, the company told Interfax, adding that the Ventall Group itself has historically had a fairly large share of sales of buildings [it produces single and multi-bay buildings made of steel structures of various levels - IF] and construction solutions for export to CIS countries.

"We not only plan to retain this part of the business, but also to strengthen relationships with key partners in the context of the new configuration of our metal structures assets," said Anastasia Mishanina, Head of Investor Relations and Communications at Severstal.

Ventall Group was set up in 1991, from 2006 to 2018 the asset was owned by the Finnish metallurgical concern Rautaruukki and was named Ruukki Rus. The remaining two enterprises, Ventall-Kama and Ventall-Don, will not be owned by Severstal.

So far, investments in the production capacities of the acquired Ventall assets are not being considered, but Severstal does not rule out the possibility of modernizing the equipment fleet and improving the economic component of the project, Mishanina added.

The production premises in Cherepovets consists of a territory measuring 46,000 m2, which previously belonged to the now defunct Cherepovets Metal Structures Plant, the statement said. Severstal intends to invest over 1 billion rubles in capacity renewal as part of the renovation of this production complex. The funds will be used to repair infrastructure, as well as to purchase and install new equipment. The new name of the asset is Severstal Steel Structures. The first products are scheduled for production in H2 2024. About 500 new jobs will be created at the enterprise.