20 March 2015 NLMK Kaluga

NLMK Kaluga produces millionth tonne of rolled steel

NLMK Kaluga produces millionth tonne of rolled steel
NLMK Kaluga, the next-generation EAF mini-mill (part of NLMK Group’s Long Products Division), that manufactures long products and sections for the construction industry, has produced its millionth tonne of rolled steel.

NLMK Kaluga mini-mill was launched in July 2013 in the Kaluga Region close to Moscow, Russia’s largest construction market. The mini-mill concept is based on locating EAF steelmaking and rolling operations near to sources of raw materials and consumers of finished steel products.

Alexander Burayev, NLMK Long Products General Director, said: “Today is another milestone for us: our millionth tonne of rolled steel. Thanks to the efficient organization of production processes and ongoing process improvements, we have been able to quickly reach the design capacity of the plant; and to continue mastering and offering new products that are in demand on the market. We plan to expand the plant’s product mix by the end of the year. This will allow us to be more flexible when responding to market demand.”

Technological solutions implemented at the rolling mill enable the simple switching of manufacturing any given product to another at a moment’s notice, depending upon market conditions and customer demand.

NLMK Kaluga significantly expanded its product portfolio in 2014 by introducing 25x4 and 75x6 angles; and #10 rebar to its market offering available to customers in Russia’s Central and Volga Regions. At the beginning of 2015, NLMK Kaluga added 63x6 angles to its product portfolio due to demand from the construction sector. By the end of the year, the plant plans to introduce 50х5, 100х9 and 90х8 angles. Alongside sections, the plant’s product mix includes #12, 14, 16, 18, 20, 22 and 25 rebar.

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.

The plant is located in the Vorsino industrial park in Kaluga region, which has 33 companies among its residents. The plant is 73 km from Moscow by road, and a little over 90 km by rail.

The plant is located in the heart of the Central Federal District; the region with the largest market for long steel products in Russia. The central region accounts for approximately 30% of long steel consumption in Russia, with only 9% of its production. The region benefits from a surplus of scrap, NLMK Kaluga’s key feedstock material, of around 2.7 million tonnes per year. Scrap is supplied by NLMK Group’s in-house scrap collecting network, Vtorchermet NLMK.

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.

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 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 H1 2014, NLMK’s Long Products Division produced 1.377 million tonnes of steel, 47% up on the same period a year earlier. Steel product sales grew by 55% to 1.392 million tonnes from 0.9 million tonnes. For instance, rebar sales increased by 43.5% to almost 1 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. During the first six months of 2014, the company generated $5.4 billion in revenue; $1,1 billion in EBITDA; and a net profit of $332 million.

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).