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11 September 2014

NLMK DanSteel supplies plates for European experimental programme to improve constructions of offshore wind turbines

NLMK DanSteel A/S, part of NLMK Europe Plate and Denmark’s only manufacturer of steel plates, has supplied 200 tonnes of plates with special dimensions made from high-strength steel for the construction of experimental foundations for offshore wind turbines as part of The PISA Project, the European research and development programme.

The aim of the project is to improve the construction of foundations for offshore wind turbines in order to reduce cost, and consequently, to raise the investment appeal of wind power. Other participants from the Danish side are DONG Energy and Bladt Industries A/S, the manufacturer of foundations for turbines. The research project is carried out by the UK Carbon Trust as part of the Offshore Wind Accelerator programme (OWA), aimed at promoting offshore wind generation and reducing the cost of wind energy.

Assembly and testing of the foundations for offshore wind turbines manufactured with the use of thick plates supplied by DanSteel will take place in September 2014. Experiments will be held in Dunkirk (France) and Cowden (Great Britain). It is planned that by the end of 2014 the results of the experiment will be used in order to develop an industrial prototype for the new type offshore wind turbine foundations.

For reference

NLMK DanSteel joined the European programme aimed at improving the construction of offshore wind turbines in May 2014. It is the only supplier of thick plates of special dimensions made from high-strength steel for the programme.

Research carried out as part of the programme has shown that the current geotechnical design for the foundations of offshore wind turbines is very conservative. Oxford University, Imperial College London and University College Dublin have developed a new, more progressive method. In order to implement it, a series of experiments must be performed using large-dimension steel piles under lateral load.

Currently, 28% of electric power in Denmark is generated by wind turbines. The Danish Government is planning to bring the share of renewable generation in the country’s energy balance to 50% by 2020; and to 100% by 2050.

About NLMK DanSteel A/S

NLMK DanSteel A/S is part of NLMK Europe Plate Products Division, owned by NLMK Group, Russia, one of the world’s largest steel producers. It has a total capacity of 0.7 million tonnes of plates per year.

NLMK DanSteel produces a wide range of high quality thick plates for wind turbines, drilling platforms, ships, ‘yellow goods’ manufacturers and infrastructures, primarily for the Northern European market.

Slabs for DanSteel’s thick plate production originate from NLMK Group’s main site in Lipetsk, ensuring a stable supply of ultra-high quality steel. This unique business model allows DanSteel to expand its presence in the large European thick plate market, offering its clients a wide product mix and just-in-time delivery.

In December 2012, NLMK DanSteel completed the revamp of its rolling mill and started production at its new 4.2 m heavy plate stand, adding new products to the company’s portfolio. The EUR120m project is part of the company’s strategy to leverage its strong position in the plates market.

About NLMK Group

NLMK Group is one of the leading steelmakers in the world, and the largest steel producer in Russia.

NLMK’s production facilities are located in Russia, Europe and the USA. The Company’s crude steel capacity is over 17 million tonnes per year, of which approximately 16 million tonnes are located in Russia. NLMK has modern production capacities that are on par with leading international manufacturers in terms of technology.

The Group’s vertical integration allows for control of the entire production chain, from mining to final processing and delivery to our customers.

The Group produces a wide range of flat and long steel products. NLMK is the world-leading supplier of slabs and transformer steel, and the largest Russian supplier of HVA products, including pre-painted steel, galvanized steel and electrical steel, as well as long products.

The Company has a diversified sales topography, delivering products to over 70 countries around the world.

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 is the only steelmaker in Russia with an investment grade credit rating from international rating agencies. It is included in the TOP10 for corporate governance and transparency among Russian public companies by international rating companies.

NLMK’s ordinary shares are traded on the Moscow Stock Exchange (ticker “NLMK”) and its global depositary shares on the London Stock Exchange (ticker “NLMK:LI”).