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27 April 2006

NLMK enhances its energy self-sufficiency

A new turbine generator with a total installed capacity of 25MW has been commissioned at the Cogeneration Plant of OJSC “NLMK”.

Its exploitation will improve reliability of energy supply to the blast furnace facilities and other shops, reduce iron and steel production cost without any additional environmental load. Commissioning of the unit will result in reducing consumption of power sourced from the Unified Energy System of Russia by 3% (166 mln. kWh) already in 2006 that will allow the Company to save 46 million rubles in the current year.

Cogeneration Plant load optimization and generating capacity expansion enable to increase Company's self-sufficiency in electric energy up to 43%. At the same time electrical energy generation cost at OJSC “NLMK” is almost 1.5 times lower than the purchase price.

The turbine generator construction project valued at 300 m rubles has been implemented during the course of 3 years within a framework of Phase I of the Company's Technical Upgrading Programme.