News

30 December 2015 Novolipetsk

NLMK Group project tops Urban Ecology nomination in national competition

NLMK Group (LSE: NLMK), the largest steel producer in Russia and one of the most efficient steel companies in the world, topped the Urban Ecology nomination in the Vernadsky National Environmental Competition.

Experts singled out NLMK for the successful implementation of its environmentally friendly waterless BG slag cooling technology at the Lipetsk site that resulted in an 8-fold reduction in hydrogen sulphide content of emissions produced during this process. This minimizes the risk of exceeding the maximum allowable concentration of hydrogen sulphide at the border of the plant’s sanitary protection zone even when the wind is coming from the new complex. Project investment totalled 409 million rubles.

The waterless cooling project was previously awarded a silver medal at the 21st international Metal-Expo exhibition.

The national environmental award was established by the Vernadsky NGO Environmental Foundation. It is organized with the support of the State Duma, the Russian Ministry of Natural Resources and the Environment, the Russian Ministry of Energy, Rospripodnadzor (Federal Service for Supervision of Natural Resource Usage) and the Russian Academy of Sciences.

NLMK Group wins the national environmental award for the third time. In 2010, NLMK’s Lipetsk site closed-loop water cycle project that completely eliminated waste water discharge into the Voronezh River came first in the ‘Innovative environmentally efficient industrial technologies’ nomination. In 2008, NLMK topped the ‘Sustainability reporting’ nomination for its ‘Social Responsibility Report 2007’ project developed in line with international GRI standards for non-financial reporting.

NLMK’s environmental achievements

NLMK has achieved unprecedented results in improving the environmental characteristics of its operations and reducing its environmental footprint. Over the last decade, Novolipetsk invested more than 25 billion rubles in environmental projects. Over the last 6 years production has increased by 52%, while emissions were reduced by 40% and waste water discharge was completely eliminated thanks to a closed-loop water cycle.

According to Rosgidromet (Russian Federal Service for Hydrometeorology and Environmental Monitoring), air pollution in Lipetsk is five times lower than 10 years ago, bringing it in line with cities with no industrial operations. In 2014 Lipetsk was recognized as the cleanest regional center in the Central Federal District and the cleanest steelmaking city in Russia.

About Environmental Programme 2020

In May 2014, NLMK Group announced the launch of the third stage of its environmental programme, covering the period up to 2020 (Environmental Programme 2020). This programme is part of the Group’s development strategy and investment programme. It is aimed at further minimizing our environmental footprint and achieving the best possible environmental standards in global steel production. Investments in environmental initiatives and projects at NLMK Group companies will total over RUB10 billion. Most of the funds will be invested at NLMK’s Lipetsk production site, a core asset of the Group.

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 $6.37 billion in revenue; $1.63 billion in EBITDA; and a net profit of $891 million in 9M 2015. Net Debt/EBITDA is 0.5.

NLMK’s ordinary shares are traded on the Moscow Stock Exchange (ticker symbol: NLMK), and its global depositary shares are traded on the London Stock Exchange (ticker symbol: NLMK:LI). The company has a BBB- credit rating.

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.