NLMK to Invest $80 Million to Upgrade Farrell Plant

FARRELL, Pa. – NLMK Group, the largest steelmaker in Russia, says it plans to spend $80 million on a major upgrade at its plant here on Roemer Boulevard.

The Russian steelmaker announced that it has signed an agreement to purchase processing equipment needed for the construction of a new walking-beam reheating furnace at the plant. The new equipment would help streamline the slab-heating process and replace three outdated pusher-type furnaces that currently operate there.

“The construction of the new furnace is a major project for NLMK Pennsylvania aimed to bolster the market presence of the company,” said Bob Miller, CEO of NLMK USA. “It will improve the quality of hot-rolled steel by eliminating slab surface defects, which are characteristic of pusher-type furnaces. In addition, there will be an approximate 45% decrease in natural gas consumption as well as a reduced emission rate.”

Construction is scheduled to begin during the third quarter of 2017 and the furnace is planned for operation in 2018. Installation will not impact production at the plant, NLMK said.

The new furnace will have the capacity to produce 395 tons per hour and 1.7 million tons per year. The furnace pre-heats steel slabs that are sent to the mill from another production facility and are then processed into carbon and alloyed steel, including hot-rolled, cold-rolled and full hard steel.

The project will also include the construction of a warehouse to store steel slabs delivered to the plant.

NLMK Pennsylvania is the largest plant in the group’s United States division. The company operates production facilities in Russia, Europe and the U.S. and its products are used in machine building, railway equipment production and pipe manufacturing. The company’s steel is also used in the mining, energy and aerospace industries.

Through the first nine months in 2016, NLMK generated $5.6 billion in revenue.

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