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20 August 2015 NLMK Kaluga

NLMK Kaluga reaches two million tonne marker

NLMK Kaluga reaches two million tonne marker
NLMK Kaluga, a new generation EAF plant (part of NLMK Long Products) that manufactures a wide range of long products used in construction, has produced its second million tonnes of steel.

The launch of NLMK Kaluga in July 2013 was the Event of the Year in Russian ferrous metallurgy. The plant is based on the mini-mill concept of locating EAF steelmaking and rolling operations in close proximity to sources of raw materials and consumers of finished goods.

NLMK Kaluga is a leader among EAF mills in terms of productivity and energy efficiency. The site’s technological process employs innovative solutions that ensure high resource usage efficiency; high quality output; and high standards of technical and environmental safety.

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

“Today represents an important milestone for NLMK Kaluga with the second millionth tonne of steel produced. Thanks to our responsible and highly qualified personnel, the Company has been able to meet targets in a short period of time; and is going strong. We continue to expand our product portfolio and the geography of sales. In 7 months of 2015, we have added a number of products to the mix which are in high demand in the construction sector, such as 63х5, 63х6, 100х7, 90х6 and 90х7 angles. The DIN 488 certificate obtained in May 2015 allows the use of NLMK Kaluga rebar in the EU construction industry.”

A high level of operational efficiency and a wide mix of in-demand products enables the Company to occupy approximately 50% of production in Central Russia, by largely pushing out exports through offering international quality products from a unique proximity to customers.

In the 6 months following launch, NLMK Kaluga ran at almost maximum capacity of rolling facilities, regardless of market conditions.

Company engineers were able to bring the performance of equipment to optimal levels and even further, through the use of innovative technological and management solutions the Company was able to achieve record productivity (conversion ratios were down 24% in 2015).

During the time it has operated, NLMK Kaluga has mastered 15 new types of long products, or over 20% of NLMK Long Products’ entire product portfolio. NLMK Kaluga’s current product mix includes #10, 12, 14, 16, 18, 20, 22 and 25 rebar and sections: 25х4, 75х6, 63х5, 63х6, 100х7, 90х6 and 90х7 angles. The Company plans to expand its offering to include 50х5 and 100х9 angles by the end of the year.

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 away from Moscow by road, and a little over 90 km by rail. The plant is located in the centre of Russia’s largest long steel consuming region, the Central Federal District. The region accounts for approximately 30% of long steel consumption in Russia, and only 9% of its production. The region benefits from a surplus of scrap, NLMK Kaluga’s key feedstock material, which accounts for 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 wire rod, 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% up on the same period a year earlier. Steel product sales grew by 25.4% to 2.36 million tonnes. Captive scrap collection totaled 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 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 $4.4 billion in revenue; $1.1 billion in EBITDA; and a net profit of $491 million in H1 2015. 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).