NLMK Group to build new reheating furnace at NLMK Pennsylvania

28 December 2016

NLMK Group, an international steel producer with operations in Russia, Europe and the USA, has signed an agreement for the purchase of the core process equipment for the construction of a new walking-beam reheating furnace to streamline the slab heating process at NLMK Pennsylvania (Farrell, PA, USA). The new furnace will replace 3 outdated pusher-type furnaces currently operational at the facility.

The reheating furnace, which will have a capacity of 395 tonne per hour or around 1.7 million tonnes per year, pre-heats steel slabs prior to further rolling at the hot strip mill. The project will significantly increase the quality of finished steel products due to the transition to a more advanced technology. It will also enable lower energy consumption and minimize environmental impact.

The project also includes the construction of a warehouse for slabs supplied by Novolipetsk.

Bob Miller, NLMK USA CEO, said: “The construction of the new furnace is a major project for NLMK Pennsylvania aimed to bolster the market presence of the company. 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 and installation works are planned for Q3 2017; and the furnace is to become operational in 2018. Installation of the new equipment will not impact upon the facility’s production plan.

Project capex is estimated at $80 million. At current prices, the project will increase EBITDA by $29 million per year (for reference, NLMK USA's EBITDA for 9M 2016 was $144 million).