2 June 2015 NLMK Kaluga

NLMK Kaluga achieves record heat series

NLMK Kaluga achieves record heat series
NLMK Kaluga, NLMK Group Long Products Division’s next-generation EAF mini-mill that manufactures long products and sections for the construction industry, has achieved a record heat series duration of 110 heats in one tundish. This is one of the best figures in the world for mini-mills with comparable EAFs.

The heat series is a factor which impacts upon consumption of charge and refractory material as well as overall process stability. NLMK Kaluga is therefore working to extend the duration of the heat series through its operational efficiency programmes and these efforts are producing impressive results.

NLMK Kaluga set its heat series record between the 18th and the 21st of May 2015, with continuous casting lasting for 77 hours 06 minutes. A total of 13,000 billets were produced, the average heat weight was 126.4 tonnes and the hourly productivity achieved was 180.6 tonnes.

During this record heat series, specific energy consumption at the EAF was 354.1 kW*h/t of product; which is in line with best global practices.

Alexander Burayev, NLMK Group Director for Long Products and Metalware, said:

“Extending the duration of the heat series is an important part of our operational efficiency programme. This record reaffirms the professionalism of our workers at NLMK Kaluga; and their commitment to results. One of the key initiatives is the optimization of EAF operations at our two sites, which has already resulted in economic gains through the reduction of charge and oxygen consumption. The positive effect of this initiative at NLMK Kaluga over the first 4 months of 2015 was 27.5 million rubles.”

NLMK Kaluga EAF shop process line is equipped with steelmaking equipment from leading global manufacturers, ensuring a high level of energy and resource efficiency, the requisite product quality and environmental safety. The EAF features Ultimate, an innovative steelmaking technology, which combines high specific electric power (more than 1 mWA/t) and a single-bucket EAF charging practice.

The 8-strand continuous casting machine (CCM) enables steel to be continuously cast without stopping for changeover, increasing the yield to 99%. NLMK Kaluga was the first site in Russia to launch this technology.

About NLMK Kaluga

NLMK Kaluga is a next-generation EAF mill, part of NLMK Group’s Long Products Division. NLMK Kaluga was launched in July 2013. Investment in the construction of the plant totaled more than RUB 38 billion, of which around RUB 7.5 billion was spent on environmental protection measures.

NLMK Kaluga’s steelmaking and long product capacities are 1.5 million tonnes and 0.9 million tonnes per annum, respectively. The facility is uniquely equipped in Russia to produce the widest range of premium-grade long products for use in construction.

Alongside sections, the plant’s product mix includes #12, 14, 16, 18, 20, 22 and 25 rebar. By the end of the year, the plant plans to introduce 50х5, 100х8 and 90х7 angles.

About NLMK Long Products

NLMK Long Products (part of NLMK Group), is the leading manufacturer of long products and metalware in the Russian market.

NLMK Long Products companies make up an integrated production chain from the collection and processing of ferrous scrap to the manufacture of HVA steel products – rebar, wire rod and metalware.

NLMK Long Products key companies are NSMMZ (EAF steelmaking and long products) and NLMK Metalware (metalware) located in the Sverdlovsk region, and NLMK Kaluga (EAF steelmaking, rebar and sections) located in the Kaluga region.

Raw materials are provided by Vtorchermet NLMK – one of the largest associations of scrap-collecting companies in Russia operating in different regions across the country.

Long Products Division’s production facilities have production capacity to produce 3.7 million tonnes per year of liquid steel; 2.9 million tonnes per year of rebar and wirerod, that is both sold to the market and reprocessed at the company’s in-house metalware operations with a capacity of 0.5 million tonnes per year.

In 2014, NLMK’s Long Products Division produced 2.7 million tonnes of steel, 21.1% up on the same period a year earlier. Steel product sales grew by 25.4% to 2.6 million tonnes. Captive scrap collection totalled 2.3 million tonnes.

About NLMK Group

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

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).