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5 October 2011

NLMK to Acquire an Electrical Steel Service Center in India

NLMK (LSE: NLMK), one of the world’s leading steel companies, today announced the acquisition of the National Laminations group, an electrical steel service center in India, for a total consideration of US$8 million. This acquisition will enhance NLMK’s position in the Indian market as one of the leading suppliers of grain-oriented electrical steel, controlling production from crude steel production to delivery to the final customer.

National Laminations group is a grain-oriented (transformer) steel processing and distribution company with around 50 employees. It has processing and warehousing capacities of 16,000 tpa and 15,000 t, respectively, located 200 km from Mumbai. It also has warehousing capacities of 40,000 t located 20 km from Mumbai, in the close proximity to the port that facilitates delivery of imported NLMK material. The location of the company’s sites not only provides an access to customers based in Western India who represent significant share of total national transformer steel consumption, but also significantly enhances pan-India distribution capability by reducing delivery lead time. The company supplies processed materials to a wide range of customers, including local and international transformer producers.

About NLMK

NLMK, a vertically integrated global steel company with over 15 m tpa crude steel capacity, is one of the world’s largest producers of the grain-oriented (transformer) steel with a total capacity of about 340,000 tpa. The company controls the whole production process of the grain-oriented steel production from crude steel production to grain-oriented steel manufacturing to delivery to the customers. Currently the company implements a technical upgrade program to further improve the quality of the grain-oriented steel and produce new premium grades of this type of steel. The company expects to start manufacturing premium grades in 2012 reaching about 140,000 tpa, or 40% of total grain-oriented steel production capacity.