Russian steelmaker OAO Zapadno-Sibirskij metallurgicheskij kombinat (Zapsib) has contracted KCI Konecranes (ZAO Konecranes Russia) to engineer and supply nine heavy-duty steel mill cranes for the expansion of their factory in Western Siberia. The exact value of the multi million euro contract is not disclosed. The cranes will be delivered through October 2004 - April 2005.
The Russian steel industry is today maximizing its output on the back of skyrocketing steel prices. There is also a development towards both upstream (ore, coal) and downstream (high VA-goods, pipes, distribution) integration. Production assets are being modernized . The Metallurgical Combine Zapadno-Sibirskij is owned by Evrasholding, a Russian holding company that lies in the forefront of this development.
The new cranes are part of Zapsib’s steel mill expansion program. “Current record-high prices for steel prompt expansion of steel production to the maximum possible extent”, says Evgeny Tanhilevich, Director, Investments, Zapadno-Sibirskij steel works. “ Zapsib’s main comparative advantage is a lower-than-peer level cost of production of long semi-products and construction steels. Therefore the natural way to boost margins is to expand production.”
Roughly 40% of Zapsib’s output goes for export to China and the Pacific Rim. Zapsib is Russia's easternmost steelmaker, which gives it competitive edge in trading with China.
“We were especially happy with the outstanding performance of KCI’s engineering team and the existence of an extensive service support program. The cranes have superior technical characteristics. An important factor was also the availability of financial cover from the financing company Finnvera”, adds Evgeny Tanhilevich.
“Local crane manufacturers have traditionally served this market. Now, there is a need for better technology”, says Seppo Hoppu, Director, Region North East Europe. “Russia has been raised to credit class 4 by European credit institutions. The access to international financing is triggering many new similar projects in the market. This order strengthens our position in this development.”
The cranes will be delivered to Zapadno-Sibirskij Works in Novokuznetsk, Russia. The cranes include a 150 tons Tundish crane, three Maintenance cranes, three Slab handling cranes and two Magnet cranes. All nine cranes feature innovative AC drive systems with variable frequency controls. Steel mill cranes represent the highest (“severe”) duty class with the most stringent safety standards. KCI Konecranes has a solid experience of modern steel mill applications. Similar solutions have been delivered to several steel mills around the world, including Scandinavia, USA and Asia.
Further information can be obtained from
Seppo Hoppu, Director, Cranes & Services, North East Europe
Tel.+358 40 -502 1522
ZAO Konecranes Russia, KCI Konecranes' wholly owned Russian subsidiary, specializes in industrial and harbour cranes, maintenance and modernization services in Russia. Headquartered in St. Petersburg, ZAO Konecranes employs 23 people.
KCI Konecranes is a world leading Engineering Group specialising in advanced overhead lifting solutions and maintenance services. KCI Konecranes is the world's leading supplier of heavy-duty cranes for process industries. KCI Konecranes is a global supplier of special harbour cranes for bulk materials and containers and a leading provider of shipyard cranes. In 2003, annual sales amounted to EUR 665 million with 4350 employees in 34 countries all over the world.
Zapadno-Siberian steel mill plant (Zapsib) is controlled by the Russian holding company, EvrazHolding. West Siberian integrated iron-and-steel works is the domestic ferrous metallurgy's leader in construction and machine-building range of profiled metal products. The Works' metal products are shipped to more than 7000 enterprises of CIS countries and are exported to over 30 countries of the world. Zapsib is Russia's fourth largest steelmaker (Magnitka, Severstal and Novolipetsk are Russia's big three).
