Russia to Build New Electric Arc Furnace Billet Plants,
1. Alapaevsk Economic Zone EAF Billet Plant (Neivinsk Project)
Project Status: Under Development (First phase construction planned for 2023-2026)
Location: Alapaevsk Special Economic Zone, Sverdlovsk Oblast, Urals region
Designed Capacity: 520,000 tonnes/year of round billets and 290,000 tonnes/year of grinding steel balls
Technology: Electric Arc Furnace (EAF) process, using scrap metal as primary feedstock
Investment: First phase estimated at 20 billion rubles (approximately $290 million)
Implementation: Planned in two phases; construction began in 2023
Key Feature: The plant will produce high-quality round billets for the pipe and machine-building industries, as well as grinding balls for mining operations
2. Ecolant DRI-EAF Complex (Vyksa Project)
Project Status: Under Construction (Scheduled for commissioning in 2025)
Location: Vyksa, Nizhny Novgorod Oblast
Capacity: 2.5 million mt/year of DRI (Direct Reduced Iron) and 1.8 million mt/year of EAF steelmaking (producing billets and other long products)
Investment: 150 billion rubles (approximately $2 billion)
Affiliation: Company affiliated with steel pipe and railway wheel producer OMK
Technology: State-of-the-art DRI-EAF combination, significantly reducing carbon emissions compared to traditional blast furnace routes
3. Russian Stainless Steel (RSC) Complex (Volgograd Project)
Project Status: Phased Construction (EAF shop to be completed in 2027)
Location: Volzhsky, Volgograd Region
Capacity: 500,000 tonnes/year of stainless steel flat products (billets as intermediate product)
Investment: Over $1 billion (100+ billion rubles)
Timeline:
Cold rolling shop: Started Q1 2023, commissioned Q4 2025
Hot rolling shop: Started Q4 2023, scheduled for 2026 commissioning
EAF steelmaking shop: Started Q1 2024, planned for 2027 completion
Strategic Significance: Will end Russia's 96% import dependence on cold-rolled stainless steel, creating approximately 3,000 jobs
4. Other Notable EAF Billet Projects in Russia (2025-2026)
|
Project |
Location |
Capacity |
Status |
Key Details |
|
Abinsk Electric Steel Works Modernization |
Krasnodar Krai |
Increased from 950,000 to 1.5 million tonnes/year of 130-150mm square billets |
Completed 2024 |
Modernized EAF, ladle furnace and billet caster by Primetals; reduced energy consumption from 420 kWh/t to 380 kWh/t |
|
Balakovo Steel Works Minimill |
Saratov Oblast |
New EAF minimill for rails, beams and sections (producing billets as feedstock) |
Ordered 2025, scheduled for 2027 startup |
Danieli-supplied ultra-modern EAF operated by Q-MELT automatic furnace suite; minimized CO₂ and dust emissions |
|
Novostal EAF-HR Complex |
Shakhty, Rostov Region |
New EAF and hot-rolled flat steel rolling complex |
Planning stage |
Investment of 40 billion rubles ($4.43 billion); will create over 1,500 jobs |
|
Metalloinvest OEMK EAF #5 |
Stary Oskol |
New EAF for SBQ (Special Bar Quality) steel |
Under implementation |
Danieli-supplied EAF and ladle furnace for automotive and bearing industries |
5. Industry Trends & Strategic Context
Decarbonization Drive: Russia's steel industry is increasingly shifting toward EAF technology to reduce carbon footprint, with EAF production expected to grow from 20% to 35% of total steel output by 2030
Scrap Utilization: The expansion of EAF capacity is driving demand for scrap metal, prompting Metinvest and other producers to advocate for curbing scrap exports
Import Substitution: Several EAF projects aim to reduce Russia's dependence on imported steel products, particularly in high-value segments like stainless steel
Domestic Equipment Development: Russian companies are increasingly developing their own EAF technologies while still collaborating with international suppliers like Danieli, Primetals, and SMS Siemag
6. Latest Developments (January-February 2026)
Russian stainless steel company (RSC) successfully commissioned its cold rolling shop in January 2026, producing the first cold-rolled stainless steel coil in Russia, marking a significant milestone toward full self-sufficiency
Severstal is focusing its 2026 investment program on developing upstream operations while continuing to modernize its existing EAF facilities at Cherepovets Steel Mill (CherMK)
OMK's Ecolant project in Vyksa is on track for 2025 commissioning, which will significantly increase Russia's DRI-EAF capacity and support the country's green steel initiatives