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4 July 2008

NLMK signs contract to build new power plant

Within the framework of NLMK’s Phase 2 Technical Upgrading Programme, the company has signed a contract to build a new 150 MW Power Plant at its main production site in Lipetsk.

Commissioning additional power facilities will allow NLMK to increase its Lipetsk production site electrical energy self-sufficiency to 60%. At the same time blast furnace gas, a by-product of the main metallurgical production process, will be used for power generation.

The turn-key contract to commission the power plant was signed with LLC ESK Soyuz. The project is to be implemented within the next 33 months, in 2011.

For reference:

NLMK’s Technical Upgrading Programme provides for a growth in steel output to 22 million tonnes by 2015, flats products output to 6.9 million tonnes, and bar and pipes output to 5.9 million tonnes.

To satisfy the demand for energy at the main production site in Lipetsk, facilities will be expanded to increase self-sufficiency from 37% in 2005 to 60% in 2011. Total investment capex into the development of power facilities at the main production site will amount to USD 0.3 billion.

In 2006 a turbogenerator with a design capacity of 25 MW was commissioned at NLMK’s co-generation plant in Lipetsk. Optimization of the co-generation plant loading system and extension of generating facilities increased the level of self-sufficiency to 43%.