Russian steelmaker OAO Zapadno-Sibirskij metallurgicheskij kombinat (Zapsib) has contracted KCI Konecranes to engineer and supply nine heavy-duty steel mill cranes for the expansion of their factory in Western Siberia. The cranes will be delivered from October 2004 to April 2005.
The new cranes are part of Zapsib’s steel mill expansion programme. “Current record-high prices for steel prompt expansion of steel production to the maximum possible extent,” says Evgeny Tanhilevich, investments director of 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. It is Russia’s easternmost steelmaker, which gives it competitive edge in trading with China.
Konecranes director Seppo Hoppu, who looks after Northeast Europe, said that local crane manufacturers traditionally served this market, but this was now changing. He explained “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 150t ladle crane, three maintenance cranes, three slab handling cranes and two magnet cranes. All nine cranes feature AC drive systems with variable frequency controls.
The contract was placed through ZAO Konecranes Russia, Konecranes’ wholly owned Russian subsidiary, which has 23 employees and is based in St Petersburg.
Zapsib is Russia’s fourth largest steelmaker, behind Magnitka, Severstal and Novolipetsk.
