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Severstal

July 29, 2002

The economic impact of implementing the program of technical-organizational measures at Severstal in the 1st quarter of 2002 was 237.7 million rubles

The goals of the program of technical-organizational measures were met at 173%, while the economic impact of implementing these measures was 237,727,000 rubles, as compared with the planned 137,264,000 rubles.
   The program has been implemented along several lines, and included activities aimed at increasing product quality, mastering new products, increasing output and decreasing expenditures.
   The best result in monetary terms was achieved from activities, aimed at decreasing expenditures. The result was 155,215,000 rubles (over 65% of overall impact of the entire program) against 82,110,000 which were planned (targets met at 189%).
   The economic impact from measures aimed at increasing product quality was ten times higher than planned and totaled 30, 915,000 rubles against planned 3, 291,000 rubles.
   The highest economic impact as compared with planned parameters was achieved in the steel smelting, the blast furnace and the electric-arc furnace shops. The latter implemented the steel smelting technology with decreased use of liquid cast iron. As a result, in the first quarter of 2001, the program goals were exceeded twenty times. In the converter shop and the blast furnace shop the program goals were met at 155 %, mainly due to increasing product quality and resource saving measures.
   Of the seven steel rolling shops the best results were achieved in the cold rolling shop. There the economic impact was 13, 045,000 rubles as compared with the planned 239,000 rubles. Due to improvement in technology the sheet rolling shop #2 increased output from 7,500 tones in the 1st quarter of 2001 to 25,460 tones in the 2nd quarter of 2001 thus exceeding the targets two times.

 

 

 

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