30 October 2014 Novolipetsk

NLMK expands production of premium quality cold-rolled steel

NLMK expands production of premium quality cold-rolled steel
NLMK Group has begun hot-testing of 8 new bell-type annealing furnace stands at its rolling operations at the Lipetsk site. At the same time an additional 15 new stands are being installed, with hot-testing planned to begin in H2 2015.

Bell-type furnaces are used to thermally treat low-carbon steel after cold rolling. The new equipment, which replaces obsolete furnaces, employs high convection hydrogen annealing technology to ensure superior durability, ductility and other mechanical properties when compared to low convection nitrogen annealing.

Widening the use of this technology will enable the company to increase production of cold-rolled steel with premium quality surface finishing by 30%, as well as tripling production of rolled steel with top-of-the-line, first group finishing.

The total cost of the two construction stages (23 new bell-type furnace stands) is approximately RUB 1.2 billion.

Konstantin Lagutin, NLMK Group’s Vice President for Investment Projects, said:
“The primary goal of the project is to expand production of premium-quality cold-rolled steel products with superior quality of surface finish. Key consumers of such products are automotive companies, white goods manufacturers, and manufacturers of containers for the chemical industry. By improving product quality the company addresses one of the main goals set out in Strategy 2017 – to grow NLMK’s presence in high value-added product markets.”

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 history of the plant began 80 years ago with the launch of the first blast furnace. Since then, the plant has progressed significantly from a single blast furnace to a global steelmaking company.

Currently, the steel production volume of the Lipetsk site is in excess of 12 million tonnes per year, or 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 machine-building to the production of energy equipment and large-diameter pipes.

About NLMK Group

NLMK Group is a vertically integrated steel company and Russia’s leading steel maker and manufacturer of rolled products with high added value. NLMK’s high-quality metal products are used in various industries, from construction and engineering to the manufacture of power-generating equipment and offshore wind turbines.

NLMK's production assets are located in Russia, Europe, and the United States. The Company’s liquid steel production capacity is over 17 million tonnes per year, of which about 16 million tonnes are produced in Russia. The Company generated USD 10.9 billion in revenue, and EBITDA of USD 1.5 billion in 2013.

NLMK’s ordinary shares are traded on the Moscow Stock Exchange (MICEX-RTS, ticker symbol: NLMK), and its global depositary shares are traded on the London Stock Exchange (ticker symbol: NLMK:LI).