The Russian government will pour $250m into modernizing the production of special steel alloys. The lack of modern technology is holding back the production of ultra-strong alloys and steel currently used in aerospace and shipbuilding, Russia Today said.
Russian Prime Minister Viktor Zubkov launched the first modern smelting furnace in the region. The government plans to commission another three furnaces by the end of the decade.
Russian officials say it's currently a low-profit, niche product, but that could change.
The government also promises to provide state-backed credits for steel producers to buy new equipment.