Production and sale of our wide range of finished products is evenly split between developing and mature markets, which ensures both growth and stability. A substantial proportion of finished products are manufactured by NLMK rolling facilities close to our wide client base, which has strict requirements in terms of product quality and delivery deadlines.

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: >29% (35% with NBH)
  • 80% of rolled products are sold in the region where they are produced

Rolled sheet production

Rolled sheets accounted for approximately 61% of NLMK’s finished products in 2015. 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

A significant advantage NLMK enjoys is the proximity of Group sites that manufacture finished products to key customers. NLMK’s key sales markets have traditionally been Russia, the EU and the USA.

The hot-strip mill at Novolipetsk was upgraded in 2015, increasing its production capacity to 6.0 million tonnes. Operational efficiency programmes at NLMK Group sites in 2015 enabled reduced waste from rolling operations, increased product quality and a boost in equipment productivity.

Plate production

NLMK consolidated its position in the plate market in 2015, with sales totaled 1.0 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.

NLMK continued to develop its product mix in 2015, mastering new grades of high-strength and abrasion-resistant plates. Division companies (and notably NLMK Dansteel) took active part in joint research and development projects, increasing deliveries of niche products which accounted for 21% of the division’s sales in 2015.

Long steel and metalware production

Deliveries of long products in 2015 totaled 2.4 million tonnes. Run rates NLMK Kaluga increasing 2 year in a row. In 2015, production capacities were loaded by 83%, despite of negative situation in Russian construction sector.

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.

Division sites actively pursued operational efficiency initiatives in 2014. This enabled a reduction of wastage and increased equipment productivity. 

* including NBH capacities