31 March 2014
NLMK Group expands funding for social programmes in 2013
In 2013, NLMK Group (LSE: NLMK), Russia’s leading manufacturer of steel and high value added steel products, increased funding for social programmes by 6% to RUB 2.3 billion.
Priority areas of NLMK Group’s 2013 Social Policy are: creating comfortable and safe working conditions; professional development and career growth; improved healthcare for NLMK employees and members of their families; organization of sporting and cultural events; and co-financing of additional non-state pension programmes.
Last year, approximately RUB 780 million was allocated for social programmes for NLMK Group employees: improvements in working conditions, disability and retirement benefits, and bonuses.
Approximately RUB 380 million went towards funding family and motherhood support programmes, youth initiatives, welfare, and education. For many years, NLMK has been providing ongoing support for basic educational institutions in organizing the education process, and in creating the conditions needed for students to receive quality education. NLMK Group employees are involved in a whole range of educational programmes: occupational adaptation, training in related professions, various specialized courses and workshops. In 2013, approximately 16,000 workers, or over 50% of the entire workforce, went through various educational programmes at Novolipetsk alone.
This area of NLMK Group’s social policy has received high appreciation fr om the state. In September 2013, a joint project from NLMK Group’s Novolipetsk and its affiliated university, the Lipetsk State Technical University, won an open contest organized by the Russian Ministry of Education and Science for a state grant to implement projects aimed at training highly-qualified personnel for companies of the Lipetsk region. The winning project, Staff Training for Production Companies of the Lipetsk Region, will now be implemented by Lipetsk University together with Novolipetsk with the financial support from the federal budget.
Over RUB 253 million went towards healthcare for employees in 2013. An additional RUB 187 million was used to provide health resort treatment for NLMK Group employees. Over RUB 160 million was allocated for sporting and cultural initiatives.
NLMK Group continued to fund housing programmes, allocating approximately RUB 146 million for these purposes. The bulk of the money was used to fund the Housing for Young Steelmakers programme at NLMK’s Lipetsk production site, and the housing programme for employees at NLMK’s new next-generation plant, NLMK Kaluga.
In 2013, NLMK allocated over RUB 155 million to the Miloserdiye charity fund. Throughout the year, funds were used to support vulnerable social groups, such as orphans and orphanage graduates, and retired citizens. The Miloserdiye charity fund was able to help a total of over 30,000 people from the Lipetsk region.
RUB 134 million was used to co-finance additional non-state pensions for NLMK Group employees. An additional RUB 91 million went towards social support for retired citizens and disabled people.
Alexander Sokolov, NLMK Group Vice President for Social Issues, said:
“NLMK Group’s strategy is based on socially responsible business principles and partner relations with the state and the community to promote active participation in improving the quality of life and ensuring stable social and economic development in the regions wh ere we operate. This year, the Group intends to maintain its current level of support for social programmes.”
In 2013, three of the Group’s companies (Novolipetsk, Altai-Koks, and Stagdok) renewed their Collective Bargaining Agreements until 2016, maintaining existing benefits and, in some cases, expanding the obligations of the Employer.
About NLMK Group
NLMK Group is a vertically integrated steelmaking company, and Russia’s leading manufacturer of steel and HVA rolled products. NLMK Group’s high-quality steel products are used in a variety of industries, from construction and machine-building to the manufacture of power generation equipment and offshore windmills.
NLMK’s production facilities are located in Russia, Europe and the USA. The Company’s crude steel capacity is over 17 m tpa, of which approximately 16 m t are located in Russia. The Company generated $10.9 billion in revenue and $1.5 billion in EBITDA in 2013.
NLMK’s ordinary shares are traded on the Moscow Stock Exchange (ticker “NLMK”) and its global depositary shares on the London Stock Exchange (ticker “NLMK:LI”).