3 October 2008 Новолипецкий металлургический комбинат

NEW air separation plant commissioned at NLMK

A new air separation plant has been commissioned at NLMK’s main production site in Lipetsk. It will ensure the failsafe supply of air separation products to the steelmaking facilities through the gradual decommissioning of depreciated lines. The plant will produce up to 34,000 m3/hour of pure oxygen as well as nitrogen, argon, neon-helium mix and krypton-xenon concentrate. The German Linde-KCA-Dresden GmbH-manufactured equipment allows the extraction of all components present in the air to produce high-quality products. The extraction ratio of the new plant is 17% higher than that of the existing plants. The complex manufacturing of air separation products will ensure more that costs are reduced by up to four times. An improved control system will ensure the prompt response to any process changes and enhance the line’s reliability. The project, which is worth over RUR700m, has been implemented as part of Phase 2 of NLMK’s Technical Upgrade Program for 2007-2011. Phase 2 of the Technical Upgrade Program aims to increase steelmaking output from 9m to 12.4 m tonnes per year and finished flats output from 5m to 9.5 m tonnes per year, as well as to achieve 100% self-sufficiency in basic raw materials. Total capex for energy sector development at NLMK’s main production site in Lipetsk will reach USD0.3 bn. Total capex for all projects included in Phase 2 of the Technical Upgrade Program up to 2011 will amount to over USD 4 bn