Business model
Mining and steel production (the most material- and resource-intensive aspects of the metallurgical process) are concentrated in low-cost regions, while finished products are manufactured much closer to the Group’s client base. This allows NLMK to minimize expenditure on production and logistics while at the same time swiftly and flexibly adapting to the changing requirements of our end users and the situation in local sales markets.
Key activities:
NLMK Group’s vertically integrated business model
Finished products are manufactured much closer to the Group’s client base. This allows NLMK to minimize expenditure on production and logistics while at the same time swiftly and flexibly adapting to the changing requirements of our end users and the situation in local sales markets.
Worldwide cost leadership is achieved through a world-class resource base with leading-edge technology for mining and processing, an optimal process environment and the professionalism of the NLMK team.
Leading-edge equipment and finely tuned business processes enable the production of quality steel with a low production cost. NLMK Group’s steel production capacity exceeds 17 million tonnes per year, 95% of which is made in Russia.
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.