23 July 2013 НЛМК-Калуга

NLMK launches next-generation EAF mill in Kaluga Region

On 23 July 2013, NLMK (LSE: NLMK), a leading global steel company, held a grand opening ceremony for NLMK Kaluga, its next-generation EAF mill, in Kaluga Region, near Moscow.

In attendance were Prime Minister of the Russian Federation Dmitry Medvedev; Governor of Kaluga Region Anatoly Artamonov; NLMK Chairman of the Board of Directors Vladimir Lisin; NLMK management and partners; and members of staff.

The launch of NLMK Kaluga will help tackle the shortage of long product production capacity currently facing the Central Federal District of Russia, and provide domestically manufactured high-quality and in-demand steel products to the construction sector in Moscow, Moscow Region, and the wider region.

Oleg Bagrin, NLMK CEO said: “NLMK Kaluga is one of NLMK Group’s key projects. It reflects the most advanced trends in steelmaking development. In current market conditions, efficient control over production costs and proximity to regions with high consumption rates are among the key competitive advantages. NLMK Kaluga is extremely well-located and is fully self-sufficient in raw materials. Its innovative processes ensure high efficiency, lower energy consumption, and a reduced environmental footprint.”

NLMK Kaluga’s steelmaking and long product capacities are 1.5 million tonnes and 0.9 million tonnes per annum, respectively. The plant is fully self-sufficient in raw materials, with ferrous scrap being supplied by NLMK Group’s scrap processing units. The plant will play an important environmental role in waste management and the recycling of secondary resources in the region.

NLMK Kaluga relies of the most innovative environmental solutions. The plant’s cleaning systems neutralize over 99% of air emissions, which is several times above the Russian average. The closed-loop water cycle completely eliminates any waste water discharge and significantly reduces water consumption when compared to similar systems. Production waste is recycled into by-products, for instance, into road construction materials.

The launch of NLMK Kaluga created around 2,000 new jobs, including 1,250 directly involved in production. NLMK Kaluga has prioritized employee safety and comfort. Salary levels are above the regional average. The plant built five modern apartment buildings for its staff in Obninsk and Vorsino.

In 2011–2012, NLMK Kaluga invested approximately RUB 55 million in staff training and development. Study programmes were launched at the Kaluga Railway College, the Obninsk Industrial College, and Obninsk Vocational School No 19. The plant has obtained a licence to set up its own training centre, where it is planning to provide courses for 50 professions.

For reference:

NLMK is a vertically integrated steelmaking company with production facilities in Russia, Europe and the USA. Its operating units have a crude steel production capacity in excess of 17 million tonnes per annum. The Company generated USD 12.2 billion in revenue and USD 1.9 billion in EBITDA in 2012. NLMK’s ordinary shares are traded on the Moscow Stock Exchange (MICEX-RTS) and its global depositary shares on the London Stock Exchange.

NLMK Kaluga is part of NLMK Russia Long; it is managed by NLMK Long Products.

NLMK Long Products, one of the largest long steel and metalware manufacturers in the Russian market, is NLMK’s subsidiary, consolidating NLMK Group’s Long Products Division. NLMK Long Products companies make up an integrated production structure covering the entire cycle from the collection and processing of ferrous scrap to manufacturing downstream steel products – rebar, wire rod, and metalware.

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

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

In 2012 NLMK Long Products companies sold over 1.7 million tonnes of long products.