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8 July 2015

NLMK Group reconstructs coke and chemical operations at Lipetsk site

NLMK Group (LSE: NLMK), Russia’s top steel-producing company and one of the most efficient steel companies in the world, has begun reconstruction of the Chemical Shop at Coke and Chemical Operations at the Lipetsk production site.

The project will significantly improve coke gas cleaning efficiency by 2017; halve air emissions fr om the chemical shop; and provide a 10% increase in chemical product output from coke gas processing.

Konstantin Lagutin, Vice President for Investment Projects, said:

‘The reconstruction of the chemical shop at Coke and Chemical Operations at Novolipetsk exemplifies a project with multiple goals in a variety of areas such as economic efficiency; occupational health and safety; and the environment. The new facility will not only boost chemical product volumes offered to external clients; it will also halve the shop’s hazardous air emissions. We plan to complete the reconstruction by H2 2016.’

Coke and Chemical Operations at Novolipetsk consist of a coke shop, wh ere coke is produced through heating coal; and a chemical shop. In the chemical shop, coke off-gas is purified from coking products, including naphthalene, resins, ammonia, etc. for use as fuel in coke furnaces and NLMK’s CHP plant. Products extracted from gas are processed into benzol, ammonia sulphate, toluene, etc.

The reconstruction provides for the optimization of the setup of the chemical shop; improvement of a number of process schemes; and installation of the latest equipment. The productivity of the new shop will be 140,000 m? of coke gas per hour.

About NLMK Group

NLMK Group is the largest steelmaker in Russia and one of the most efficient in the world. NLMK’s 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 (MICEX-RTS, ticker symbol: NLMK), and its global depositary shares are traded on the London Stock Exchange (ticker symbol: NLMK:LI).