Balakovo Steel Plant

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Balakovo Steel Plant (АО Северсталь-Сортовой Завод Балаково (predecessor, Russian), Металлургический завод Балаково), also known as Mini-Mill Balakovo, Severstal Balakovo (predecessor), MZ Balakovo, AO, Balakovo Steel Works JSC, Severstal-Sortovoi Zavod Balakovo AO (predecessor), Balakovo Metallurgical Plant, is a steel plant in Bykov Otrog, Saratov, Russia that operates electric arc furnace (EAF) technology.

Location

The map below shows the exact location of the plant in Bykov Otrog, Saratov, Russia:

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  • Location: 2, Metallurgov shosse, Bykov Otrog, Balakovo district, Saratov Region, Russia, 413810
  • Coordinates (WGS 84): 51.936009, 47.81591 (exact)

Background

Initially, the plant was named "Severstal - Long Products Plant Balakovo" («Северсталь - Сортовой завод Балаково»). The first steel products were produced in 2013. In 2019, Severstal sold the enterprise to Abinsk Electrometallurgical Plant LLC, after which the plant changed its name to Balakovo Metallurgical Plant.[1] The owner of the plant, Abinsk Electrometallurgical Plant LLC, is associated with the deputy of the State Duma (Russian Parliament) Ivan Demchenko, who owns the asset through his ownership of the company Novostal-M LLC (Novostal-M OOO) which in turn owns Abinsk Electrometallurgical Plant LLC.[2]

In June 2024, it was reported that Novostal-M, the plant's owner, had reduced liquid steel production due to the financial burden of excise taxes and export duties. It became more profitable for the company to source steel billets from partners rather than relying on scrap metal. It was also mentioned that the company had stopped paying the excise tax on steel, required during production, and had begun purchasing ready-made semi-finished products. Novostal-M continues to work with scrap metal, with HBI (Hot Briquetted Iron) making up 10-15% of its production. However, the sharp increase in scrap prices has become a significant issue. Once built, the new EAF unit will be using 80% of HBI and 20% of scrap. Novostal-M is planning to produce the first steel at the Balakovo plant in 2025, and the first rails by 2028.[3]

In 2019, Rosprirodnadzor fined the plant for pollution. The plant exceeded standards for hazardous waste twofold. The list of harmful substances includes included 70 items, including lead, which has a toxic effect on the environment and is extremely dangerous for the kidneys, spleen and bones. One milligram per liter is enough for the effects to become irreversible.[4]

JSC Severstal-Sortovoy Zavod Balakovo (previous owner) did not pay the fine of 100,000 rubles from Rosprirodnadzor, filing objections in court. However, the judge found the arguments of the environmental organization convincing and did not satisfy the company's claim.[4]

JSC Severstal-Sortovoy Zavod Balakovo has been found guilty of polluting the environment. In addition to fines, it will now have to revise the technology for producing and storing substances that pose a threat to environmental pollution.[4]

Plant Details

Table 1: General Plant Details

Construction date Start date Workforce size
2008[5] 2013[6] 2600[7]

Table 2: Ownership and Parent Company Information

Parent company Parent company PermID Parent company GEM ID Owner Owner company PermID Owner company GEM ID
Novostal-M LLC 5046391773 E100000131027 MZ Balakovo JSC[8] 5035751397 E100000131126

Table 3: Process and Products

Steel product category Steel products Steel sector end users ISO 14001 Main production equipment
semi-finished, finished rolled[9] rebar, rod, billet, channel, angle, rail, square[10][9][11] building and infrastructure, transport[12][13] 2022-06-21[14] EAF

Table 4: Plant-level Crude Steel Production Capacities (thousand tonnes per annum)

1Please see our Frequently Asked Questions page for an explanation of the different capacity operating statuses.
Capacity operating status1 Electric arc furnace steelmaking capacity Nominal crude steel capacity (total)
construction 1500[15][13][16][17] 1500[15][13][16][17]
operating 1250[18][19][7] 1250[18][19][7]

Table 5: Actual Plant-level Crude Steel Production by Year (thousand tonnes per annum)

Year EAF production Other/unknown steel production Total (all routes)
2019 unknown unknown
2020 >0 >0
2021 1000[18] [18] 1000[18]
2022 unknown unknown
2023 unknown unknown

Unit Details

Table 6: Electric Arc Furnace Details

Unit name Status Announced date Construction date Start date Current capacity (ttpa) Current size (tonnes)
unknown EAF (1) operating[19][7] 2008[5] 2013[5] 1250[19][7][18] 169.0[19]
unknown EAF (2) construction[20][21][16][11] 2021[13] 2025[13][11] 1500[17][16][15][13]

Table 7: Electric Arc Furnace Feedstock Details

Unit name Scrap-based % scrap % HBI % basic/merchant pig iron
unknown EAF (1) yes[19] 87.50[11] 12.50
unknown EAF (2) yes[16] 20.00[16] 80.00[16] unknown

Articles and Resources

Additional data

To access additional data, including an interactive map of steel power plants, a downloadable dataset, and summary data, please visit the Global Iron and Steel Tracker on the Global Energy Monitor website.

References

  1. "Металлургический завод Балаково". Metallobazy.ru. Jan 29, 2020. Retrieved Apr 6, 2022.{{cite web}}: CS1 maint: url-status (link)
  2. Cite error: Invalid <ref> tag; no text was provided for refs named :1
  3. "Акционер "Новосталь-М": рынок РФ вытаскивает нас по рентабельности, прибыль от экспорта утекает в пошлину (Russian)". Interfax. June 11, 2024. Retrieved October 15, 2024.{{cite web}}: CS1 maint: url-status (link)
  4. 4.0 4.1 4.2 "Балаковское предприятие не признало факт загрязнения окружающей среды". Балаково Go64.ru - сайт Балаково Саратовской области (in русский). Retrieved 2024-11-14.
  5. 5.0 5.1 5.2 https://web.archive.org/web/20240528174443/https://www.balmetall.ru/en/company/. Archived from the original on 2024-05-28. Retrieved 2024-05-24. {{cite web}}: Missing or empty |title= (help)
  6. https://web.archive.org/web/20211024022424/https://www.balmetall.ru/company/. Archived from the original on 2021-10-24. {{cite web}}: Missing or empty |title= (help)
  7. 7.0 7.1 7.2 7.3 7.4 https://www.novostal-m.ru/company/mz-balakovo/. {{cite web}}: Missing or empty |title= (help)
  8. https://web.archive.org/web/20240115041245/https://www.kommersant.ru/news/topnewsfordoc?type=3&id=77. Archived from the original on 2024-01-15. {{cite web}}: Missing or empty |title= (help)
  9. 9.0 9.1 https://web.archive.org/web/20220319101356/https://www.balmetall.ru/en/manufacturing/sorting-plant/. Archived from the original on 2022-03-19. {{cite web}}: Missing or empty |title= (help)
  10. https://www.metalinfo.ru/ru/news/157220. {{cite web}}: Missing or empty |title= (help)
  11. 11.0 11.1 11.2 11.3 https://www.interfax.ru/spief2024/966101. {{cite web}}: Missing or empty |title= (help)
  12. https://web.archive.org/web/20220120112346/https://www.severstal.com/eng/media/news/document25320.phtml. Archived from the original on 2022-01-20. {{cite web}}: Missing or empty |title= (help)
  13. 13.0 13.1 13.2 13.3 13.4 13.5 https://web.archive.org/web/20220320120044/https://www.metalinfo.ru/ru/news/126610. Archived from the original on 2022-03-20. {{cite web}}: Missing or empty |title= (help)
  14. https://web.archive.org/web/20230603080126/https://www.balmetall.ru/en/documents/. Archived from the original on 2023-06-03. {{cite web}}: Missing or empty |title= (help)
  15. 15.0 15.1 15.2 https://web.archive.org/web/20220318141611/https://metallobazy.ru/news/1148. Archived from the original on 2022-03-18. {{cite web}}: Missing or empty |title= (help)
  16. 16.0 16.1 16.2 16.3 16.4 16.5 16.6 https://web.archive.org/web/20230803213410/https://www.interfax.ru/interview/908180. Archived from the original on 2023-08-03. {{cite web}}: Missing or empty |title= (help)
  17. 17.0 17.1 17.2 (PDF) https://web.archive.org/web/20210929032946/https://www.oecd.org/industry/ind/latest-developments-in-steelmaking-capacity-2021.pdf (PDF). {{cite web}}: Check |archive-url= value (help); Missing or empty |title= (help)
  18. 18.0 18.1 18.2 18.3 18.4 18.5 https://web.archive.org/web/20220812023133/https://metallobazy.ru/news/1844. Archived from the original on 2022-08-12. {{cite web}}: Missing or empty |title= (help)
  19. 19.0 19.1 19.2 19.3 19.4 19.5 https://web.archive.org/web/20210509081528/https://www.balmetall.ru/en/manufacturing/meltshop/. Archived from the original on 2021-05-09. {{cite web}}: Missing or empty |title= (help)
  20. https://web.archive.org/web/20221021005540/https://www.business-vector.info/relsy-prichaly-i-cink-142771/. Archived from the original on 2022-10-21. {{cite web}}: Missing or empty |title= (help)
  21. https://web.archive.org/web/20230612195255/https://tass.ru/ekonomika/16957519. Archived from the original on 2023-06-12. {{cite web}}: Missing or empty |title= (help)

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