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Strabag constructs steel plant in Russia

Publicly listed construction group Strabag SE has been contracted by Russia's Tula-Steel Company to build a steel production and rolling mill in Tula, some 200 km south of Moscow. The industrial complex will be constructed in close vicinity to Tulachermet's existing iron mill. The contract value is € 300 million. Construction of the project will begin in autumn 2014 and is expected to be completed within 36 months.

"Over the past few years, Strabag has built steel mills of similar dimensions and complexity. This new contract highlights our excellence in the construction of industrial plants, " said Strabag SE CEO Thomas Birtel, whose role on the executive board includes responsibility for the Russian market.

Under the terms of the contract, Strabag agreed to construct turnkey production halls and an administrative building, to set up the production facilities, to create a railway link, access roads, outdoor installations including all supply and disposal facilities, and to install the production facilities – as provided by the client – of the converter-based steel plant with its cupola continuous casting machine and two refined iron rolling mills. The steel plant will be designed for an annual production capacity of 1.5 million tons of refined steel, steel rods and wire.



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