News

28 November 2014 Novolipetsk

Novolipetsk improves efficiency of transportation infrastructure management system

Novolipetsk improves efficiency of transportation infrastructure management system
NLMK Group has completed the first stage of its program to automate and transition its railway transport management and control system at the Lipetsk production site to modern highly reliable digital technologies.

The goal of the program is to increase the reliability and efficiency of logistic processes, including the speed of load handling; and the security of transporting raw materials and products in the context of increased output and delivery volumes.

Investment into automating NLMK’s railway transport management system totaled approximately RUB 350 million. On the whole, over the last five years NLMK invested approximately RUB 4 billion into maintaining and developing its transport system, including the construction of a logistic infrastructure for its next generation Blast Furnace #7 (launched in 2011).

Sergey Likharev, NLMK Group’s Vice President for Logistics, said:

“By implementing the high-efficiency digital systems for managing and controlling our railway transport, we are resolving the task of improving the productivity of all logistic processes and working towards accomplishing the Group’s goals set out in our Strategy 2017. In the last three years alone, the volume of railway deliveries from the Lipetsk site has increased by 17%. This process automation allows us to adapt existing infrastructure to growing production volumes, along with other benefits.”

The Novolipetsk railway system includes over 485 km of railways; 18 stations; 123 locomotives; and 1875 wagons. The plant annually receives 31.5 million tonnes of raw and other materials delivered by railway; and dispatches 14 million tonnes of finished products to its clients.

As part of the automation program railway switch and signal controls at several stations will be organized from a single work place, cutting costs and increasing organizational efficiency.

Railway stations are being equipped with the newest systems for microprocess centralization of railway switches and signals in order to increase throughput capacity and improve safety. Five of NLMK’s 18 stations are already equipped with such systems.

Four stations are equipped with automated systems for the commercial examination of rolling stock which increases the efficiency of cargo-turnover. The new equipment allows handling service workers to check the safety of goods and wagons without setting foot on the rails.

In 2015, during Stage 2 of the program, NLMK will continue its initiatives to organize the control of several stations from one work place. Construction will begin on the ‘Tsentralniy’ servicing terminal, for the repair and maintenance of locomotives.

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.

NLMK’s production site in Lipetsk has modern production capacities that are on par in technology terms with leading international manufacturers. Production covers all technological processes: from raw material processing to HVA steel product production. Novolipetsk employs more than 29,000 people.

In 20114, Novolipetsk began implementing a new system of logistics. For instance, Novolipetsk has started exporting electrical steels in multi-tonnage containers. This will halve the costs of their transportation and minimize the risk of damage in the process of transporting and handling the goods. Steel coils are loaded into the containers to be transported via railway to the port directly at NLMK’s production site. In 2014, NLMK plans to ship over 4,000 tonnes in containers from the Lipetsk site.

About NLMK Group

NLMK Group is a vertically integrated steel company and Russia’s leading steel maker and manufacturer of rolled products with high added value. 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 $10.9 billion in revenue and $1.5 billion in EBITDA in 2013.

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).