Out of 8 bidders, including construction firms from Nizhny Novgorod, St. Petersburg,
Magnitogorsk and Moscow, CJSC RSP-Centr (Cherepovets) was awarded a contract. This company, specialized in industrial construction has a long-term relationship with Severstal as well as experience in construction for the steel making industry.

The winner of another bidding contest Oto Mills (Italy) was chosen as a main supplier of a small diameter pipe mill with an annual capacity of 60,000 tons. Severstal has signed a contract with Oto Mills in May. It is now in the performance stage.

The construction of the mill is expected to begin next year. Jobs to prepare the construction site for equipment installation will begin this October. New facilities for small diameter pipe production will be built on-site at the joist web shop.