Strategy

Grigory Fedorishin

President of NLMK

NLMK transforms ideas and resources into steel products. We source ideas from our employees, customers and business partners. We are striving to control our resources, taking a safe and responsible approach to their recycling and re-use. We produce clean and durable steel which is used in thousands of applications that improve our everyday lives.


Adopted in February 2014, NLMK Group’s Strategy 2017 was aimed at unlocking the Company’s hidden potential. It had a modular structure and included projects designed to improve the Group’s operating efficiency and business processes, as well as to increase self-sufficiency in strategic resources.

A combination of operating and investment initiatives will help us ensure sustainable development in a changing market environment.

Strategy 2017 targets:

  • Net gains of $1.0 bn pa. vs. 2013 EBITDA
  • Structural reduction of annual capex
  • Conservative leverage: Net debt/EBITDA of 1.0x
  • Stable positive free cash flow
  • Dividend payments in accordance with a revised dividend policy

Strategy 2017 levers:

  • Operational efficiency: best in class production costs and productivity
  • World class resource base: efficient upstream integration, wider use of cheaper resources
  • Market leadership: improved utilization rates, sales growth in core markets
  • Leadership in sustainability & safety: minimal environmental footprint, safe operating practices, motivated and engaged workforce

Key Strategy 2017 goals achieved

NLMK Group announced the results of its Strategy 2017 for the period 2014-2017 in February 2018. Strategy 2017 target of $1 billion annual EBITDA gains had been achieved.

  • Strategy 2017 delivered structural annual EBITDA gain of $1,019 million.
  • Management initiatives contributed around $740 m (over 70%) to the result.
  • The company expects additional gains of around $160 million in 2018 generated by recently completed investment projects.
  • Full self-sufficiency in iron ore and pellets has been achieved with positive NPV on the investments.
  • NLMK sales grew faster than respective markets across all Group divisions.

Strategy2017

Strategy 2017 delivered structural annual EBITDA gain of $1,019 m. Management initiatives contributed around $740 m (over 70%) to the result. Full self-sufficiency in iron ore and pellets has been achieved with positive NPV of the investments.


For a detailed information about Strategy 2017 results please follow the link

Strategy 2022: on to a new cycle

  • NLMK is currently finalizing the development of Strategy 2022 to be presented in 2018.

  • Strategy 2022 aims to maintain a balance between investment in growth projects, a conservative financial policy and high returns to NLMK shareholders.