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Annual report 2007 - Magnitogorsk Iron & Steel Works ...

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Expenditures on major capital projects in <strong>2007</strong><br />

Facility USD m<br />

Sinter division<br />

2 sinter stabilization units 76<br />

Lime calcination shaft kilns 23<br />

Blast furnace division<br />

Bell-less top charging devices 34<br />

#9 Blast Furnace overhaul 51<br />

<strong>Steel</strong>-smelting division<br />

#6 slab caster 41<br />

EAF Shop facilities 19<br />

Rolling division<br />

5,000 mm plate mill 191<br />

2,000 mm hot strip mill’s modernization 64<br />

Wet skin-pass on 2,500 mm cold rolling mill 26<br />

HDGL #2 49<br />

CCL #2 6<br />

Auxiliary services<br />

Storage areas’ revamping 17<br />

R/w terminals’ revamping 10<br />

In <strong>2007</strong> the following projects were implemented:<br />

Sintering division:<br />

Start-up of 2 sinter stabilization units which will improve the quality of sinter, thus reducing the consumption of<br />

iron ore materials and coke in the blast furnace and raising its productivity.<br />

Construction of 2 lime calcination shaft kilns to supply the newly commissioned steel-smelting facilities with<br />

quality lime.<br />

Blast Furnace Division:<br />

Installation of bell-less top charging devices (BTCD) on 2 blast furnaces. Such devices, coupled with the use of<br />

stabilized sinter, will allow to reduce the consumption of coke and raise the furnaces’ productivity. In the future it is<br />

planned to install BTCD’s on the other six furnaces, two of them in 2008.<br />

Rolling Division:<br />

Completion of the 2,000 mm hot strip mill’s modernization which will allow to step up its productivity to 6 mtpy,<br />

improve the quality and expand the product mix.<br />

Environment Protection:<br />

НThe most significant investment in the environment protection was be the revamping of the # 4<br />

desulphurization unit of the Sintering Division to reduce SO2 and dust emissions.<br />

Commissioning of the aspiration system on 3 production facilities. Work is underway to install similar systems on<br />

another 3 facilities.<br />

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ANNUAL REPORT OPEN JOINT-STOCK COMPANY MAGNITOGORSK IRON & STEEL WORKS<br />

MMK’s capex in 2002-<strong>2007</strong> have amounted to USD 2.9 bn, which has allowed to:<br />

increase crude steel production from 10.3 to 13.3 mtpy;<br />

increase rolled steel production from 9.0 до 12.2 mtpy;<br />

increase the share of downstream products in the total output from 10% to 12%;<br />

decrease the wear degree of the fixed assets from 66% to 50%.<br />

SEASON <strong>2007</strong><br />

8

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