The results of the first test batch of 200 tons, shipped to Merloni TermoSanitari in Spring 2004, were positive. This batch of steel was tested and received favorable conclusions upon both a mechanical and a surface quality tests. Based on that, the Italian partner considers opportunities for increasing shipments or Cherepovets-made rolled steel. In September-October 2004, Severstal plans to ship a second batch of 600 tons of the same assortment to Merloni TermoSanitari.

Sevestal has mastered a special grade of hot rolled pickled steel with strict requirements to mechanical characteristics to meet Merloni's demands. This steel is intended for production of internal boiler, which is a major working part of water heaters. Requirements to mechanical characteristics of this grade of steel are so strict, because the interior part of the boiler is covered with enamel. This enamel should stay intact in the course of service in high temperature and unstable pressure conditions.

Beginning 2005, Merloni TermoSanitari intends to place orders for rolled steel with Severstal. This steel will be used at its new plant, located near St. Petersburg, which produces water heaters of Ariston brand. Alexey Venedictov, the project director commented that if testing of the second batch of steel proves positive, Severstal will become the main supplier of Merloni plant in Vsevolgsk and receive orders to shipments from other plants in Europe and Asia."

"A partnership with Merloni will enable Severstal to carry out its strategy for product and service development for transnational companies", Alexei Venedictov emphasized.