London, February 25, 2016

Severstal orders ladle furnace from Primetals Technologies for its Cherepovets converter steel works

• Twin ladle furnace will treat 4.8 million metric tons of liquid steel per annum
• Production capacity of converter steel works to increase to almost 10.3 million metric tons per annum
• Consolidation of liquid steel treatment will significantly reduce operating costs

Primetals Technologies has received an order from PAO Severstal, a Russian steel producer, to supply a new twin ladle furnace for its Cherepovets converter steel works. The ladle furnace can treat 375 metric ton charges of liquid steel with a treatment time not more than 45 minutes, and has an annual capacity of 4.8 million metric tons. It will increase the production of converter steel from its previous maximum of 9.5 million to almost 10.3 million metric tons per annum. The additional ladle furnace will also enable all the steel treatment to be brought together into a single section of the plant. This will reduce annual operating costs by approximately 10 million euros. The project is scheduled to be completed by the beginning of 2017.

The Cherepovets Combine in the Vologda region is part of the "Severstal Russian Steel" Division of PAO Severstal and is one of the world's largest integrated iron and steel works. It produced around 11.3 million metric tons of liquid steel in 2014. The volume of steel product sales amounted to 10.6 million metric tons. The steel is used to make a large number of end products, including hot- and cold-rolled flat steel, galvanized and coated products, and long products. The Cherepovets converter steel works has three converters, each with a capacity of 350 metric tons. Until now, only one ladle furnace has been available for treating liquid steel.

Primetals Technologies will be responsible for engineering the twin ladle furnace, the alloying system, the dedusting system, and will supply key components. The scope of supply also includes the associated electrical and automation equipment. Primetals Technologies will also supervise the installation and commissioning, and provide the staff training. Severstal will be responsible for the technical documentation development and the construction activities. The company invests approximately 43 million euros to expand of its treatment capacity. Severstal and Primetals Technologies can look back on many years of close cooperation. The last order involved Primetals Technologies installing a secondary dedusting system in the Cherepovets converter steel works, which has now been in operation since the end of 2014

Computer-animated image of the twin ladle furnace from Primetals Technologies for the Cherepovets, Russia converter steel works of PAO Severstal

Primetals Technologies, Limited, headquartered in London, United Kingdom, is a pioneer and world leader in the fields of engineering, plant building, and the provision of lifecycle services for the metals industry. The company offers a complete technology, product, and services portfolio that includes integrated electrics and automation, digitalization, and environmental solutions. This covers every step of the iron and steel production chain—from the raw materials to the finished product—and includes the latest rolling solutions for the nonferrous metals sector. Primetals Technologies is a joint venture of Mitsubishi Heavy Industries and partners, with around 7,000 employees worldwide. To learn more about Primetals Technologies, visit the company website www.primetals.com.