In September 2019, Severstal became the lead investor in Arcanum Alloys’ most recent round of financing. Arcanum Alloys has developed a unique technology to develop a special alloy on a rolled surface. This technology enables the manufacturing of a wide range of products not only with improved characteristics, including high aesthetic and corrosion properties equivalent to stainless steel, but also with excellent formability and a lower cost profile. Such products are widely used in the automotive and construction industries, as well as in the production of household appliances.
This technology offers promising opportunities to provide unique types of electrical steel for highly critical applications within electric vehicles, self-driving aerial vehicles and other fast-growing markets. Severstal plans to launch a pilot for the production of rolled products with diffusion alloying at the Cherepovets Steel Mill site by the end of 2021. Depending on the success of the pilot, a decision will then be made on the volume and further scaling of production.
Andrey Laptev, Director of Business Development and Corporate Venture Projects, commented:
"The acquisition of intellectual rights from Arcanum Alloys for the use of breakthrough technologies in metallurgy is more than just a glimpse into the future. In the nearest future Severstal will be able to offer truly unique products that may interest customers from traditional industries, as well as fast-growing markets, such as electric vehicles. Most of the largest automobile manufacturers are already producing such vehicles, continuing to perfect their processes taking into account the newest technologies and increasingly consumer-conscious habits. This acquisition presents a unique opportunity for Severstal to begin delivering these unique products abroad. The patents we have acquired are registered in many countries across the world, and throughout Severstal’s key regions of Europe, Asia and North America."
George Gogolev, Head of Severstal Ventures, commented:
"Severstal's venture capital activity has provided us with unprecedented access to a wide range of breakthrough technologies in recent years. Acquisition of the intellectual rights to these latest technologies, which use alternative methods to obtain unique steel grades, gives us a new opportunity to offer our customers innovative product solutions. In the coming months, we will launch a pilot production of rolled products with diffusion alloying at our flagship site in Cherepovets. During this industrial experiment, our regular and potential customers will be able to take part in it. The domestic market of the Russian Federation is a net importer of stainless steel, so the start of production of this type of rolled steel will be a new round in the development of Russian metallurgy."