NLMK introduces digital service to boost raw material quality
NLMK Lipetsk, the flagship site of NLMK Group, has introduced a digital service at its sintering operations to ensure the stable chemical composition of raw materials to reduce the level of fuel consumption for pig iron production.
The new digital solution is used in the production of sinter, a ferriferous material for pig iron smelting. The system assists in creating a properly balanced mix for the components of sinter: iron ore concentrate and lime. A precisely measured combination of components ensures the stable chemical composition of the end product, while the use of high-quality sinter enables a reduction in fuel consumption during pig iron production.
Previously, the proportions of ingredients in the mix were determined by employees manually, based on technical regulations and instructions. Since the process involves heterogenous raw materials and high-intensity production, it proved challenging to calculate the optimal proportions required. Today, based on data on volume and chemical composition, the new digital solution can independently determine the composition required.
The estimated annual gain generated by the introduction of the digital solution amounts to RUB 100 million.
At the moment, teams of production workers and digital solutions specialists are integrating more than 50 services across NLMK Group operations and production sites. These solutions are aimed at increasing productivity, reducing costs, improving product quality, and enhancing customer service, in addition to a number of other objectives.
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.
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