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30 January 2020

NLMK pilots automated production planning system

NLMK Lipetsk, the flagship site of NLMK Group, has embarked on piloting an automated production scheduling system. The system is integrated into business processes at all stages of production and sales planning. The key goals of the project are to optimize the production load and to grow output, and to improve the quality of customer service.

When a new order comes in from a customer, the system automatically determines its feasibility, and calculates the lead time based on the current order book and capacity utilization rates, the optimal schedule and other factors. The manufactured products will be delivered to the customer just in time.

Vyacheslav Vorotnikov, NLMK Lipetsk Managing Director, said: “The introduction of a production scheduling system is a combination of IT optimizers and a transformation of business processes encompassing our sales, planning, production, logistics and maintenance services. The implemented solution is based on the best available planning practices for the sector. It will enable us to ensure JIT deliveries and to boost out clients’ competitive edge, and to increase our output through debottlenecking our process chain.”

The total investment in the system exceeds RUB 1 bn. The system is planned for launch in Q2 2020.

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 0.25х. 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: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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