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Small plant for А500С-class building bars

Project at-a-glance

Project highlights
Project indicators
Investment target and overview
Mini-factory for Production of A500S-Class Steel Rods is a high-tech metalworking center that produces high-strength A500 and A600 steel rods of three ductility categories per the new RF Standard 1.3.375-2.004.14 and European standard EUROCODE 92, as well as ready-made wire-frame and anchor products for construction of precast and cast-in-place buildings and structures of criticality levels 1 and 2.
Total required investment, USD mln
Investor's equity capital
Investor's debt capital (by sources)
Budgetary funds (guarantees)
Use of proceds
New construction
Renovation/upgrade of existing assets
Project design
Preferred investment structure
Information about co-investors (names, investment share):
Confirmed: two members of the company (Special Company) and natural persons. In 1Q 2015, equity contributions into the registered capital of the Special Company totaled 33,647 thsd RUB / 0.525 mln Euro. Respective shares of contributors in the registered capital are 81.53% and 18.47%.
Under approval
Ratio if equity in total capital, %
Project status. Available documents (yes/no)
Business idea
Preliminary research
Project feasibility study
Market research
Project design documentation
Financial model
Business plan
Project launch and closure, years
Project’s investment phase: 3Q 2015 – 3Q 2016
Official materials in support of the projects (decrees of either the federal or regional government, letters from local government, provision of incentives, etc.)
Under completion
Key economic indicators
IRR (internal rate if return), %
Payback period, years
NPV (net present value), USD mln
Implementation status. Information
on available facilities/equipment

As of today, the following actions have been completed as part of the project:
1. Local placement of the mini-factory was approved by the Multiagency Commission for Placement of Production Capacities in Voronezh Region on 10 December 2009;
2. A 2.55 ha land parcel with cadastral number 36:16:5300001:125 intended for placement of production and administration buildings has been identified and allocated on the terms of registered long-term lease. Land Lease Contract No. 215 of 5 July 2010 has been signed;
3. Integrated design of the mini-factory to the requirements of the RF Urban Planning Code has been completed, design documentation has been reviewed, and Construction Permit No. RU36516302-175-12 was received on 3 December 2012;
4. Interface flowchart for projects implemented with government participation/support is being updated. Investment agreement for LLC NPP StroyStal project has been submitted to JSC Sberbank of Russia for review and approval.
5. Seeking government support on the national/regional level, investment project documentation has been drafted and submitted to the Department of Economic Development of Voronezh Region for review by the Expert Board on the Delivery of Voronezh Region Social and Economic Development Strategy;
6. Investment project delivered by LLC NPP StroyStal is strongly focused on social and economic development, innovation and import phase-out in the construction sector of the Central Black Earth Region and the Southern Federal District. The project meets the goals and objectives of the Strategy for the Development of Building Materials and Prefabricated Construction Industry until 2020, which was developed by the Government of the Russian Federation.
Full-scale project of the mini-factory development with total value of 933,760 thsd RUB as of 1Q 2015 presumes production, after attainment of designed capacity, of 88.527 tonnes per year of high-strength A500 and A600 steel rods of three ductility categories, including:
- rebar in the quantity of 11,755.20 tonnes per year, and
- wire-frame products in the quantity of 76,771,80 tonnes per year.
As per the contract, Italian company PROMSKTAR srl was selected as the key manufacturer and supplier of major process equipment for the mini-factory.


1. The project appears relevant in the context of current development, by assignment of the Government of the Russian Federation, of a new regulatory framework for Russian metallurgy and construction sectors, the need for high-quality competitive building materials, and increase of output in solely residential construction sector from 84 mln sqm in 2015 to 140 mln sqm by 2020.
Russian market of reinforcing steel rods totaled 5.5 to 5.7 mln tonnes in 2012, with average growth rate of 6-8% by 2015.
2. Leading design institutes of Voronezh Region have proven technical and economic feasibility of using products of mini-factories in the designed industry-specific construction projects in the near term.
3. The design of mini-factory construction stage 1 was approved by the expert review board of the relevant ministry and was selected for implementation by the Ministry of Regional Development of the Russian Federation (Minutes of 7 March 2014 are attached).

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Project ID01/36/15

Region of Russian Federation, Area
Voronezh Region
Metals & Mining
Parent company/shareholder
LLC NPP StroyStal
Legal address of the shareholder, website

Russia, 396330, Voronezh Region, Novousmansky Area, Volya village, Ilyicha St. 4

Position, full name of the CEO
of the shareholder
Vyacheslav Alekseyevich Chetyreshnikov, Project Coordinator
Contact person, telephone number
Last update
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