NLMK Lipetsk, the Group's flagship production site, has begun construction and installation works on the complete overhaul of Continuous Casting Machine (CCM) No. 9, which is a milestone project in NLMK Group’s Strategy 2022.
The launch of the new CCM No. 9 will conclude the blast furnace and steelmaking operations development programme, aimed at boosting the output of NLMK Lipetsk by 1 m t of steel.
CCM No. 9 will also enable NLMK Lipetsk to begin production of unique 'heavy' slabs of up to 400 mm in thickness and 2800 mm in width, which feature high chemical purity and structural homogeneity. Slabs with these special parameters are made for processing into plates for use in the production of large-diameter pipes, wind power facilities, oil-drilling platforms, and in the shipbuilding sector.
Investment in the project will total RUB 12 bn. The new production unit will take the place of the old CCM, which has already been dismantled. The productivity of the unit will be increased by 80%, reaching 1.8 m t of steel per year. Completion of construction and the operational launch of the CCM is planned for December 2019.
Konstantin Lagutin, NLMK Group Vice President, Investment Projects, said:
“The overhaul of CCM No. 9 will enable the Company to strengthen its competitive edge on the global steel market by expanding the product mix and delivering a premium-quality product. Moreover, the project represents efficient growth for NLMK Lipetsk, making the most of the site's potential.”
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 the most 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 0.25х. 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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