Prudent CAPEX strategy

The Group’s investment projects are aimed at further developing its competitive advantages, while maintenance investments are focused on supporting the sustainability of EVRAZ’ operations.

Annual CAPEX breakdown by maintenance and development, US$ million

Realised investment projects

Construction of an LDP mill at Regina

Launched in 2017
  • Produce 1 inch X70 pipe
  • Reduce conversion cost by US$14 million annually
  • Add 250 thousand tonnes of welding and 160 thousand tonnes of finishing capacity

Total CAPEX US$ 74 million

EVRAZ North America LDP sales, kt

Ongoing investment projects

Construction of the blast furnace no. 7 at EVRAZ NTMK

Will be launched in 2018

The new blast furnace no. 7 is slated to be launched in Q1 2018 with pig iron capacity of 2.5 mtpa to maintain stable volumes during the capital repair of blast furnace no. 6 in 2018-19. In 2018, pig iron production volumes could be lower due to the repairs, but they will reach more than 5 mtpa in the medium term.

Total CAPEX US$ 196 million

EVRAZ NTMK pig iron production, kt

Grinding ball mill construction at EVRAZ NTMK

Will be launched in 2018

A new grinding ball mill with 134 ktpa capacity. EVRAZ grinding ball production is expected to increase to more than 300 ktpa.

Total CAPEX US$ 19 million

EVRAZ grinding ball sales, kt