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20 April 2015

NLMK Group generates over 1.2 billion ruble saving through enhanced energy efficiency

NLMK Group (LSE: NLMK), the largest steelmaker in Russia and one of the most efficient in the world, generated a saving of 437 million rubles in 2014 through optimization of energy resource purchasing; as well as a saving of 800 million rubles through projects to increase the efficiency of resource use and energy equipment.

Efficiency enhancement projects were aimed at modernizing the lighting systems at NLMK Group companies; reducing energy loss in the vapor and hot water supply networks; reduction of generating equipment repair downtime; and increasing in-house energy generation.

NLMK Group’s large-scale energy projects included the launch of a new turbo generator with a capacity of 50 MW and an air separation unit at the Lipetsk site. These projects drove energy self-sufficiency at Novolipetsk from 52% to 54%. VIZ-Steel has begun start-up activities at its natural gas vapor reforming facility for the production of hydrogen, whilst the first stage of the lightning upgrade project at Stoilensky was completed.

Alexander Starchenko, NLMK Group Vice President for Energy, said: “We are planning both cost-efficiency and optimization initiatives; as well as investment projects for 2015 in order to achieve the level of best available technologies. In the near future, we will focus on installing pulverized coal injection technologies at blast furnaces #6 and #7 at the Lipetsk site; modernizing bell-type furnaces at Novolipetsk rolling operations; and launching commercial operations at VIS-Steel’s air separation units.”

NLMK Group’s energy management efficiency in 2014 was endorsed by international experts. Representatives of the British Standards Institute (BSI) confirmed the compliance of the energy management system at Altai-Koks, Stoilensky, VIZ-Steel, NSMMZ, and NLMK Metalware with the requirements of ISO 50001 international standard.

About NLMK Group

NLMK Group is the largest steelmaker in Russia and one of the most efficient in the world. NLMK’s high-quality metal products are used in various industries, from construction and engineering to the manufacture of power-generating equipment and offshore wind turbines.

NLMK's production assets are located in Russia, Europe, and the United States. The Company’s liquid steel production capacity is over 17 million tonnes per year, of which about 16 million tonnes are produced in Russia.

NLMK has the most competitive cash cost among global manufacturers; and one of the highest profitability levels in the sector. The company generated $10.4 billion in revenue; $2.4 billion in EBITDA; and a net profit of $845 million in 2014.

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