Regional news

1 February 2016 Novolipetsk

Novolipetsk delivers all-time high output in 2015

In 2015, Novolipetsk, NLMK Group’s main production site in Lipetsk, produced 12.85 million tonnes of steel (+2.4% year-on-year), an all-time high in the history of the plant. This record performance was supported by productivity improvements throughout the value chain of the site.

Sergey Filatov, Novolipetsk Managing Director, said:
“Over the last 15 years, Novolipetsk has seen a technological break-through: we have significantly modernized our facilities and expanded our production capacity by over 50%. We are now using the potential this has unleashed to improve the efficiency of technological processes and productivity. Our record output and the significant reduction of costs is evidence of the progress we have achieved. We are convinced that Novolipetsk’s further efforts in this direction will solidify NLMK Group’s leadership in efficiency.”

In 2015, all production stages at Novolipetsk posted record performance.

Sintering operations: Record output achieved since the launch of the sinter plant in 1964. In 2015, sinter output totaled 15.2 million tonnes (+2.7% year-on-year), including 14 million tonnes of skip sinter (+3.9% year-on-year), driven by a series of efficiency initiatives; use of advanced technological process control methods; and equipment productivity improvements. The quality of sinter is improved: the amount of screenings has been reduced to an all-time low of 7.3%.

Coke-chemical operations: Record performance in optimizing raw material consumption was achieved, with dry coal charge consumption per tonne of dry bulk coke reaching a record low of 1309 kg per tonne.

Blast furnace operations: 2015 pig iron output increased to 12. million tonnes (+5.5% year-on-year) as a result of improved pig iron smelting technology; mastering pulverized coal injection; and increased operational efficiency. Consequently, commercial pig iron production almost doubled to 631,000 tonnes. As a result of projects aimed at improving resource use efficiency, coke consumption continued to reduce year-on-year by 3%.

Steelmaking operations: The highest productivity over the entire history of BOF operations at the Lipetsk site was achieved. 12.85 million tonnes of steel (+2.4% year-on-year) was produced in 2015. Output of slabs with special dimensions featuring superior chemical composition, the bulk of which is supplied to the domestic market, increased by 21% to 1.03 million tonnes. These products are used for complex infrastructure solutions and in machine-building.

Rolling operations: Finished product output spiked in 2015. Over 6 million tonnes of HRC was produced, an all-time high considering the complexity of the product mix produced at Mill 2000 in 2015. Deliveries of commercial galvanized steel increased by 8.6% to reach 0.64 million tonnes. Deliveries of electrical dynamo steel increased by 5% to 250,000 tonnes. Production of 1st choice transformer steel increased by 1% to 93,000 tonnes. Output of top steel grades grew by 0.4% to 100,000 tonnes. Total transformer steel production in 2015 increased by 12% to 102,000 tonnes.

About Novolipetsk (NLMK’s main production site in Lipetsk)

Novolipetsk is the main production site of NLMK Group, Russia’s leading manufacturer of steel and high value added rolled products, and one of the most efficient steelmaking companies in the world. Novolipetsk is the nucleus of NLMK Group’s single production chain, with assets in Russia, the EU and the USA.

The steel production volume of the Lipetsk site is approximately 18% of all steel produced in Russia, and approximately 80% of all steel products produced by NLMK Group.

Novolipetsk’s high-quality steel products are used in various strategically important industries, from construction and engineering to the manufacture of power-generating equipment and large-diameter pipes.
Novolipetsk produced 12.85 million tonnes in 2015. This represents an all-time high in the entire history of the plant since 193. With capacities running at 100%, production grew by 2.4% compared to 2014. This record performance was supported by productivity improvements throughout the value chain of the site.