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  • EVRAZ: events (2014)
  • 1. EVRAZ Caspian Steel launches mass production (19.06.2014)
  • EVRAZ plc (LSE: EVR) («EVRAZ» or the «Company») announces the start of mass production at its rolling mill EVRAZ Caspian Steel in Kostanay, Kazakhstan. The first lot of rebar from the new mill has been already delivered to customers.
  • The plant has a planned production capacity of 450 thousand tonnes of rebar per annum, with products including rebars of various length, with diameters from 10mm to 40mm. Currently the mill is producing hardened rebar A500S with diameters of 14mm, 18mm and 25mm and A3 rebar made of steel grade 25G2S with diameters of 18mm and 25mm. EVRAZ Caspian Steel will also produce a unique EVRAZ rebar A500(SP), allowing savings of up to 25% of the amount of metal used during construction works. This rebar has been awarded all necessary certificates in Kazakhstan.
  • The mill is equipped with a state-of-art quality control certified laboratory, and a packing line which meets all its clients’ needs.
  • 2. EVRAZ improves its’ railroad product portfolio for the European market (17.06.2014)
  • VUZ, the European certificating authority for rail transport, has issued EVRAZ NTMK with a Compliance Certificate (TSI) for rolled railway wheels with a diameter of 920 mm of design type BA 319, to be used for freight cars. Certification of this new railroad product will allow the company to consolidate its’ position on the European market, especially in Germany.
  • In order to be awarded the certificate EVRAZ NTMK completed two inspection audits: a technical audit, and a quality management system audit. The technical audit included the verification of all stages of railway wheel production, starting with the steel production process. EVRAZ NTMK’s convertor shop produces special steel grade ER7 with high quality features for the production of BA 319 wheels. The wheels also passed thermo-mechanical tests in an accredited Czech laboratory.
  • These audit procedures proved the effectiveness of the plant’s quality management system and its compliance with TSI requirements. The expert commission was impressed by the high level of processes of automation for wheel production, and by the archiving data system for each wheel.
  • This is the second TSI certificate awarded to EVRAZ NTMK. Previously, the plant received a certificate for design type BA 318. Design type BA 319 is used for forming a wheel pair with new axis, while BA 318 is used for wheel pairs with renovated axis.
  • “EVRAZ plans to expand its’ presence in Russian and foreign markets. Our experts are working on new types of high quality railroad products, including railway wheels”, said EVRAZ Vice-president, the Head of Railway Products Division Ilya Shirokobrod. “This year, EVRAZ NTMK has already delivered its’ first lot of railway wheels for the fifth generation locomotives Evolution produced in Kazakhstan under license from American company General Electric. Our next step is delivering the experimental batch of BA 318 wheels for Deutsche Bahn.”
  • EVRAZ NTMK is producing a new type of wheel for General Electric; a solid-rolled wheel with curvilinear S-shaped disk 1050 mm in diameter, with superior rim hardness from 320 Brinell and above.
  • 3. EVRAZ sells EVRAZ Vitkovice Steel(04.04.2014)
  • EVRAZ plc (LSE: EVR) (“EVRAZ” or the “Company”) announces the signing and closing of the sale of its wholly-owned subsidiary EVRAZ Vitkovice Steel (“EVS”) to a group of private investors (Martinley Holdings Limited, Nabara Holdings Limited, Vitect Services Limited, Hayston Investments Limited and Dawnaly Investments Limited, with each buying 20% of EVS), for a gross consideration of US$89 million adjustable for the actual level of EVS working capital. In addition the buyers have assumed US$198 million of EVS debt liabilities, including the repayment of US$128 million of EVRAZ’s inter-company debt.
  • EVRAZ will apply the sales proceeds for general corporate purposes, including, but not limited to, the repayment of some of its debt.
  • EVS, which has been a part of the Company since November 2005, is a manufacturer of steel hot rolled products located in Ostrava in the Czech Republic. In 2013, EVS produced 571 thousand tonnes of steel products.
  • According to EVS standalone financial statements prepared in accordance with IFRS, in 2013 EVS generated US$442 million of revenue from continuing operations. As of 31 December 2013, EVRAZ Vitkovice Steel had gross assets of US$278 million. For the year ended 31 December 2013, it produced a gross profit of US$31 million, US$(2) million of EBITDA and a loss before tax from continuing operations of US$32 million. This loss includes, inter alia, foreign exchange loss of US$8.5 million, interest expense of US$6.6 million and other expenses related to stoppages of operations of US$9.7 million.
  • The plant employs just over 1,000 people.
  • It is expected that the transaction will not affect EVS production or the composition and number of its work force.
  • Alexander Frolov, EVRAZ’s CEO, said, “We continue to focus on streamlining our business, concentrating management’s efforts on the key assets and deleveraging. The disposal of Vitkovice Steel is part of that strategic initiative.”
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