NLMK Group and Air Liquide expand cooperation in industrial gas production
NLMK Lipetsk, NLMK Group’s flagship site, and the French company Air Liquide, a leading industrial gas producer, have signed a package of agreements on expanding cooperation. According to the agreements, Air Liquide will construct a cutting-edge air separation unit (ASU) in Lipetsk and purchase assets for producing hydrogen and rare gas concentrates from NLMK. These joint projects will increase the reliability of NLMK’s supply of compressed air and the products of its separation as the company implements a planned 1 million tonne increase in steel production by 2022.
In Lipetsk, Air Liquide will design and build an ASU with a capacity of 34,000 cubic meters of oxygen per hour, as well as a steam turbine and a number of infrastructure facilities. The new outsourced ASU will provide the plant with oxygen and nitrogen. Start-up of the unit will boost the efficiency of NLMK production processes and help reduce costs, thanks to the ASU’s prime energy efficiency performance and gas production technology that does not require additional compressor units. The commissioning of the new equipment is planned for Q2 2023.
Additionally, NLMK will sell two hydrogen production stations, a section producing inert gases (neon helium and krypton xenon mixes) and several filling stations to the French company. The sale of these facilities to Air Liquide will ensure these production capacities continue to develop rapidly in order to meet leading international standards, and increase the mutual benefit of the deal to NLMK Group and Air Liquide.
Sergey Chebotarev, NLMK Group Vice President for Energy, said: “We welcome Air Liquide as our new partner at the NLMK production site. Our agreement will enable us to jointly develop our capabilities in industrial gas production and in new fields as well, including decarbonization, hydrogen energy, and hydrogen steel production.”
About Air Liquide
A world leader in gases, technologies and services for Industry and Health, Air Liquide is present in 80 countries with approximately 67,000 employees and serves more than 3.7 million customers and patients. Oxygen, nitrogen and hydrogen are essential small molecules for life, matter and energy. They embody Air Liquide’s scientific territory and have been at the core of the company’s activities since its creation in 1902.
Air Liquide’s revenue amounted to 22 billion euros in 2019 and its solutions that protect life and the environment represented more than 40% of sales. Air Liquide is listed on the Euronext Paris stock exchange (compartment A) and belongs to the CAC 40, EURO STOXX 50 and FTSE4Good indexes.
Today, Air Liquide in Russia operates 17 industrial sites in key regions. More than 600 employees supply products and services to over 1,500 customers.
About NLMK Group
NLMK Group is the largest steelmaker in Russia and one of the most efficient in the world.
NLMK Group’s steel products are used in various industries, from construction and machine building to the manufacturing of power-generation equipment and offshore wind turbines.
NLMK operates production facilities in Russia, Europe and the United States. The Company’s steel production capacity exceeds 17 million tonnes per year.
NLMK has a highly competitive cash cost among global manufacturers and one of the highest profitability levels in the industry. In 12M 2019, the Company generated $10.6 bn in revenue and $2.6 bn in EBITDA. Net debt/EBITDA stood at 0.7х. The Company has investment grade credit ratings from S&P, Moody’s, Fitch, and RAEX (Expert RA).
NLMK’s ordinary shares with a 18.6% free-float are traded on the Moscow Stock Exchange (ticker "NLMK") and its global depositary shares are traded on the London Stock Exchange (ticker "NLMK:LI"). The share capital of the Company is divided into 5,993,227,240 shares with a par value of RUB1. For more details on NLMK shareholder capital, please follow the link.
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