22 October 2009 Новолипецкий металлургический комбинат

NLMK commissions new hot-dip galvanizing line

NLMK has commissioned the fourth Hot-Dip Galvanizing Line (HDGL-4) with an annual capacity of 300,000 tonnes at the main production site in Lipetsk. The thinner galvanized steel (up to 0.22mm) will allow the Company to expand its product mix.

The new process line is designed for the production of wide hot-dip galvanized flats with a thickness ranging fr om 0.22mm to 0.8mm and width ranging from 900mm to 1270mm on the basis of low carbon steel grades. This product is primarily used in construction and white goods manufacturing.

At present, domestic demand for this type of thin galvanized flats is satisfied mainly by imports. After the commissioning of the new line, NLMK will enter the market with new high value added products that have never been produced in Russia before. Moreover, it will increase its galvanized steel production capacity which will reach 1.2 million tonnes per year. About 50% of the volume produced at HDGL-4 will be further processed into pre-painted steel.

The new line was installed in the NLMK’s dynamo steel shop wh ere previously was based a heat-treatment and coating line. This optimization of the production space in dynamo steel production shop allowed the Company to more effectively use its production facilities and reduce overall project costs without any decrease in dynamo steel capacities.

The total value of the project, implemented within the framework of NLMK's Technical Upgrade and Development Program in cooperation with Andritz Sundwig (Germany), is over RUR2.5 billion.

For reference:
NLMK is a leading producer of hot-dip galvanized steel in Russia, with about a 30% market share in domestic production. The Company produces hot-dip galvanized steel with a width of up to 1800mm and a thickness ranging from 0.4mm to 4mm. Hot-dip galvanized steel produced by NLMK is used to manufacture roll-formed shapes, steel structures for construction, and automotive and white goods’ components. Between January and August 2009, the Company produced over 620,000 tonnes of hot-dip galvanized steel, and 96% of this was sold in the domestic market.