It is planned, that the total shipments under the project in 2004 will be 150 thousand tons of API 5L rolled products. High production in the beginning of the current year allows to expect achievement of the target set.

Essential growth of production results from improvement of commercialized products quality, which is evidenced by positive feedback from the customers who received the trial lots of such products in 2003. At present JSC "Severstal" is capable to produce the rolled products of Grade B - X70, and in some lots the actual mechanical properties of steel meet the toughest requirements for X80 grade.

Improvement of product quality in comparison with the previous year is connected with production process advancement based on previous deliveries' experience. The new products are now produced with the use of vacuum degasser, and recently with the use of hot metal desulphurization.

Improvement of product quality as per API standard expands the range of JSC "Severstal" partners in the foreign and in the domestic market. JSC "Severstal" has its customers in Russia, Israel, France, Greece and Great Britain. It is planned to increase the number of partners further: presently the negotiations are held with the companies in Spain, China, Kuwait, Turkey and Iran.

12 Febrary 2004