Slovakia Steel Mill (SSM) has constructed a new build steel mill near Strážské, in eastern Slovakia, with the help of project management services from SGS. Unlike most steel mills in Europe, which are simply enlargements or modifications of existing structures, this is a greenfield project with the potential for creating many new jobs in the region.
The plant, located within the industrial zone of a chemical factory, takes up 367,000 square meters (36.7 hectares) of land. With a steel mill, a rolling mill, a water treatment plant and an industrial gases plant, it has a guaranteed capacity of 600,000 mt/a of billets.
Challenges to overcome
The project was halted temporarily after the first EPC contractor declared bankruptcy. This resulted in time delays and increased costs when it was restarted. To keep costs down and ensure that work progressed smoothly, SSM hired SGS, in a contract valued at EUR 1.6 million, to oversee further construction. SGS was recommended by Czech Export Bank, which provided most of the project’s financing.
Overseeing the work
SGS began managing the project in September 2009. It was tasked with ensuring that work performed was in accordance with contract conditions, which were based on international and Slovak standards, laws and regulations. SGS was responsible for:
- Project management
- Developing a business plan
- Reviewing project technology and project documents
- Inspecting the construction site
- Inspecting the manufacture of selected technologies
- Taking control of procedures
- Health, safety, environment and quality control
SGS completed its role within the project in 2011, to the client’s satisfaction.