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Mechel Commissions New Rebar Production Line at Mechel Campia Turzii
Jul. 3, 2008 Mechel OAO has commissioned a new construction reinforcement production line at its Mechel Campia Turzii subsidiary in Campia Turzii, Romania. The project was part of the company’s program targeting entry into the custom-made rebar market for its Mechel Service OOO subsidiary.
Mechel Service OOO’ Romanian branch, Mechel Service Europe OOO, has been providing Mechel's metal product sales in this region since it opened in March 2008. In order to penetrate the high-value-added market niche, the company installed a new production line at Mechel Targoviste to manufacture custom-made reinforcing elements conforming to each customer's specific needs. The company has now completed installation and startup of a similar production line at the Mechel Campia Turzii metallurgical plant. The new production lines have allowed Mechel to increase its output volume of products that meet the latest demands of its customers in the construction industry.
The new production line at Mechel Campia Turzii will release inserts (joist webs) 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 of these custom-made products will be manufactured to eliminate the need for any additional processing prior to use.
The production line's projected capacity is 1000 tonnes of shaped steel per month, with the potential for a significant increase in output. The project investment amounted to 1 million euros, or approximately USD $1.6 million. The complex was supplied by Schnell of Italy.
“This project gives Mechel Service Europe OOO an opportunity to offer construction companies a supply of finished reinforcing elements throughout Romania,” commented Mechel Management OOO CEO Vladimir Polin. “At the same time, by installing two similar production lines within 400 km of each other, we will decrease logistics costs and will be able to arrange flexible and convenient delivery schedules for our customers.
“After the line commissioning at Mechel Campia Turzii our reinforcing materials production capacity will increase two-fold, reaching a capacity of 2000 tonnes per month, strengthening our position in this growing market niche,” added Polin. “This is especially important considering the rapid growth in the building materials market of Eastern Europe, which is tied to the general economic growth trend in this region.”
Mechel, one of the leading Russian mining and metals companies, unites producers of coal, iron ore, nickel, steel, rolled products, and hardware. Mechel products are marketed domestically and internationally.