As part of its continued growth in the Eastern European steel market, Mechel recently commissioned a new line at Mechel Targoviste for the production of reinforcing bar. The commissioning follows the company’s opening of Mechel Service Europe OOO, in Romania to support metal product sales in this region.
The new line will produce inserts (“web joist s”) that are used to manufacture apertures of doors and windows, bind reinforcement structures together, and strengthen bearing structures; as well as welded frames necessary to create bearing concrete columns and other construction frames. All custom-made products will be manufactured to eliminate the need for any additional processing prior to its use.
Manufacturing custom-made reinforcement elements includes several stages, including sorting, cutting, bending, and storing. Each stage is provided with the latest-technology machines that can automatically cut and displace reinforcements, obtain maximum precision while cutting large quantity of rebars, and bend any forms. All machines are designed to be very cost efficient and can produce at high speeds with minimum manual labor.
“This production gives Mechel Service Europe OOO an opportunity to offer construction companies a supply of finished reinforcing elements in the long term and will attract more end users due to its complex supplies and wider range of services,” commented Mechel Management OOO Chief Executive Officer Vladimir Polin. “Using our reinforcing materials, we can reduce construction periods while ensuring a high quality product and reliability.”
“This new production line has given us the potential to win a new market niche,” continued Polin. “This is especially important considering there is rapid growth in the building materials market of Eastern Europe, which is tied to the general economic growth trend in this region.
Mechel expects the new reinforcing bar line to produce high margins as it produces custom-made reinforcing elements conforming to each customer’s specific needs. Mechel will continue to supply products that meet the latest demands of customers in the construction industry.
“The new line at Mechel Targoviste will produce high-margin products that are currently in high demand on the market,” said Polin. “After commissioning the production line and arranging the shaped steel sales, the product volumes will be ramped up by installing additional equipment.
The complex was supplied by SCHNELL, Italy, a manufacturer of equipment for metallurgical plants. The production line’s projected capacity is 1000 tonnes of shaped steel per month with the potential for a significant increase in output.
“We are pleased that Mechel’s steel division continues to successfully execute on its strategic objective to transfer to manufacturing downstream products with high added value,” concluded Polin. “This allows Mechel to maintain a steady market position and generate stronger profits.”
The project investments amounted to 1 million euros, or USD $1.5 million. The primary costs were for designing and acquiring the equipment, preparing premises, and training new personnel. Forty additional employees were hired for operation of the line.