Downstream

Finished products are made locally for the Company’s strategic markets of Russia, the EU and the USA, in close proximity to consumers. With a total production capacity of finished products in excess of 15 million tonnes, NLMK can process as much as 90% of captive crude steel at its own rolling facilities.

Production process: processing of semi-finished steel products into flat or long products at rolling facilities.

NLMK’s steel processing plants are diversified both geographically and in terms of the products they manufacture. Our rolling facilities are located in Russia, Europe, and the USA.

The Company’s rolling facilities are located in Russia, Europe and the USA. NLMK Group’s rolling assets are divided by product group, namely steel sheets, plates, and long products.

Production process efficiency and a flexible sales strategy allow NLMK to adjust its production programme depending on the market. If there is a weakening in demand for high value added products then production of standard grades of steel can be increased almost without loss for sale on more profitable markets; and when demand is restored the Group can increase output of high value added products, thus balancing out production.

  • Rolling capacity: >15 m t per year*
  • More than 90% of steel produced can be processed at NLMK Group’s own assets in Russia and abroad*
  • Share of high value added products: 30% (36% with NBH)
  • 80% of rolled products are sold in the region where they are produced

Rolled sheet production

Rolled sheets accounted for approximately 63% of NLMK’s finished products in 2016. Capacities are located in Russia (Novolipetsk and VIZ-Steel), Europe (NLMK Europe Strip) and the USA (NLMK USA).

This product group includes hot-rolled steel and high value added products such as cold-rolled, galvanized, pre-painted and electrical steel.

Advantages

Due to the location of NLMK Group’s rolling operations in strategic markets, 65% of steel is sold in the region where it was produced. This allows the Company to meet the customers’ most challenging delivery timescales and respond rapidly to local demand fluctuations.

Upgrade of hot-dip galvanizing line- HDG-1 at the Lipetsk production site increased total capacity to produce HDG steel by 11% to 1.25 million tonnes.

Plate production

NLMK consolidated its position in the plate market in 2016, with sales totaled 1.2 million tonnes. Plate manufacturing facilities are located in Denmark (NLMK Dansteel), Belgium (NLMK Clabecq) and Italy; together forming the NLMK Europe Plate division.

NLMK manufactures a wide variety of plates, ranging from commercial grades to unique high-strength and abrasion-resistant Quend and Quard plates.

Advantages

NLMK benefits from an extensive product mix as well as the proximity of its production facilities to key customers as finished products are manufactured in Europe; NLMK’s key sales market for plates.

Long steel and metalware production

Deliveries growth rate of long products in 2016 totaled 18%year-on-year. Production capacities were loaded by 82%.

NLMK assets manufacture rebar, wire rod, sections, various types of wire and wire products, nails, fixing hardware, and other long products.

Assets are located in the Ural and Central Regions of Russia.

Advantages

NLMK’s key advantage in this market is the geographic location of its assets in fast-developing regions of Russia characterized by large volumes of construction; the key consumer of long products. These regions also provide good access to raw materials, i.e. ferrous scrap.

* including NBH capacities