31 July 2015

NLMK Group increases supply of transformer steel to Siemens

NLMK Group (LSE: NLMK), Russia’s top steel-producing company and one of the most efficient steel companies in the world, has begun delivering transformer steel to Siemens’ Voronezh-based plant. This steel will be used to manufacture core plates for power transformers.

Novolipetsk, NLMK’s Lipetsk production site, made the first two shipments in June and July. In the future, NLMK is plans to make monthly deliveries to ‘Siemens Transformers’ plant in Voronezh.

Ilya Guschin, NLMK Group Vice President for Sales, said:

“NLMK is among the global leaders in production of hi-tech steel products such as transformer steel. The quality of our steel and our reliability make us one of the key suppliers for leading global manufacturers of electrical goods in Russia and abroad. We continue to work on expanding our range of transformer steel, for example by developing new high-permeability grades, to be on the cutting-edge of innovation and help our clients lead in their respective fields.”

NLMK has been supplying plates, transformer and dynamo steel to Siemens plants since 2010. NLMK steel is used to manufacture wind turbines and offshore converter platforms, railway motors and power transformers. Currently, NLMK delivers its steel to Siemens plants in Germany, Austria, Hungary, United Arab Emirates, Brazil, Columbia, and Mexico. NLMK Group delivered a total of 6,100 tonnes of transformer steel to Siemens in 2014; and 3,500 tonnes in the first half of 2015.

Transformer steel is manufactured by Novolipetsk and by VIZ-Steel; an NLMK Group company. In 2014, Novolipetsk shipped approximately 90,000 tonnes of transformer steel, whilst VIZ-Steel shipped a total of 172,000 tonnes; with 50,000 tonnes and 86,000 tonnes shipped in the first half of 2015, respectively.

About NLMK Group

NLMK Group is the largest steelmaker in Russia and one of the most efficient in the world. NLMK’s 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.

NLMK has the most competitive cash cost among global manufacturers; and one of the highest profitability levels in the sector. The company generated $10.4 billion in revenue; $2.4 billion in EBITDA; and a net profit of $845 million in 2014.

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).

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 12.56 million tonnes in 2014. This represents an all-time high over the 80 years of NLMK’s history. This record performance was supported by productivity improvements throughout the value chain of the site. With capacities running at 100%, production grew by 1.3% compared to 2013.