NLMK Group hits 5 million tonne steel supply milestone for large-diametre pipes
NLMK Group, a global steel company, with operations in Russia, the US and the EU, has shipped 5 million tonnes of slabs to Vyksa Steel Works (VSW, part of OMK Group).
NLMK Group and OMK created an unique process chain in Russia in 2012. NLMK manufactures slabs at it Lipetsk site from captive iron ore supplied by Stoilensky. VSW then processes these slabs into heavy plates at Mill 5000 and into large-diametre pipes at its Pipe Electric Welding Plant No. 4.
High quality of NLMK steel, coupled with Vyksa’s advanced production processes for plates and large-diameter pipes, ensure pipe production on par with global standards, as evidenced by OMK’s participation in international pipeline projects, including Power of Siberia, Bovanenkovo–Ukhta, Ukhta–Torzhok, Central Asia–China, and Zapolyarye–Purpe.
Ilya Gushin, NLMK VP for Sales, said:
“As part of its contribution to strategic national projects, NLMK Group has already shipped 5 million tonnes of steel used in the production of high-quality large-diameter pipes to OMK. This new milestone in our partnership is a great example of productive win-win cooperation with consumers operating within a single process environment.”
Eduard Stepantsov, OMK Head of Commercial Department, said:
“An integrated pipe production chain developed by OMK and NLMK enabled us to displace imports, and supply Russian energy companies with top-quality goods. Russian-made large-diameter pipes are used in the construction of large-scale international and Russian gas and oil pipelines. As a result, we have practically eliminated LDP imports.”
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 2018, the Company generated $12 billion in revenue and $3.6 billion in EBITDA. Net Debt/EBITDA stood at 0.25x. The Company has investment grade credit ratings from S&P, Moody’s, Fitch and Expert RA.
NLMK’s ordinary shares with a 19% 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"). 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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