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Quality policy
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Taking into account the world's experience of development of steelmaking industry and manufacturing facilities of OAO "Metallurgical plant n/a A.K. Serov", the necessity of maintaining the volume of production and competitiveness of the plant, social infrastructure of the plant and town in general, the management of Ural Mining and Metallurgical Company adopted step-by-step programof the plant reconstruction.

Within the program of development, reconstruction and upgrading of OAO "Metallurgical plant n/a A.K. Serov" adopted by the management of UGMK the following stages were singled out:
1 stage: Installation of the ladle furnace and finishing stands of 320 mill

Ladle furnace. The out-of-furnace steel treatment plant was put into operation in the middle of 2003. The investments amounted to 225,4 mln. rubles. The estimated payback period is 4 years. Actually the payback was recorded in less than two years since the equipment had been put into operation due to considerable cutdown of melting duration, reduction of ferroalloys consumption and favorable market environment.

Capital investments in basic stock during 2001-2004 have already brought a certain effect: capital consumption that amounted to 63% on January 1, 2001 dropped to 49% in the beginning of 2005; the share of capital asset in currency of the balance sheet has grown and financial stability of the enterprise has improved.
Installation of continuous finishing train NNZHK 320x600. During the complete overhaul of the mill in May and June of 2005 the stands were installed and are being mastered nowadays. The use of stands will make it possible to bring down the index of consumption of billets for rolling. The capital investments reached 49,3 mln. rubles; the estimated payback period of the project is 2,7 years.

2 stage. Construction of the electric arc furnace (EAF-80) and vacuumator
In comparison with the open-hearth method electric-furnace steelmaking is more cheap and efficient due to less losses and material consumption and greater production intensity. The technological flexibility of production will be preserved on the base of the existing production mix and this will allow to transform quickly changing market conditions.

The start-up of EAF-80 is planned for the middle of August, the full capacity will be reached starting in 2008, and the volume of output will raise to 720 ths.t. of steel.

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