27 February 2015

NLMK to boost productivity of one of its blast furnaces


NLMK Group (LSE: NLMK), the largest steelmaker in Russia and one of the most efficient in the world, has a scheduled overhaul of Blast Furnace No.5 at its main Novolipetsk production site in Lipetsk. As a result, the average capacity of the furnace will increase from 6,000 tonnes per day to its design capacity of 8,000 tonnes per day.

Overhaul of the BF will not impact Novolipetsk’s production programme as BF No.5’s productivity will improve; and performance of other BFs will increase over the course of the year.

Novolipetsk currently operates five blast furnaces: No.3 (1.3 million tonnes per year); No.4 (2 million tonnes per year); No.5 (2.8 million tonnes per year ); No.6 (3.2 million tonnes per year); and No.7 (4.2 million tonnes per year). The latter, launched in 2011, is one of the most efficient blast furnace in the world. Novolipetsk is successfully implementing an efficiency improvement programme. As a result, 2014 saw record performance achieved throughout the site’s value chain. Steel output grew by 1.3% compared to 2013 reaching 12.56 million tonnes, with capacities running at 100%.

Productivity of all blast furnaces was increased as a result of improved pig iron smelting technology, mastering pulverized coal injection and increased operational efficiency; with daily output increasing by an average 2.3% year-on-year to reach an average 36,000 tonnes of pig iron.

About Novolipetsk (NLMK’s main production site in Lipetsk)

Novolipetsk is the main production site of NLMK Group, Russia’s leading manufacturer of steel and high value added rolled products, and one of the most efficient steelmaking companies in the world. Novolipetsk is the nucleus of NLMK Group’s single production chain, with assets in Russia, the EU and the USA.

Novolipetsk produced 12.56 million tonnes in 2014, with capacities running at 100%. This represents an all-time high over the 80 years of NLMK’s history. Production grew by 1.3% compared to 2013. This record performance was supported by productivity improvements throughout the value chain of the site.

Novolipetsk’s high-quality steel products are used in various strategically important industries, from construction and engineering to the manufacture of power-generating equipment and large-diameter pipes.

About NLMK Group

NLMK Group is the largest steelmaker in Russia and one of the most efficient in the world. NLMK’s high-quality metal products are used in various industries, from construction and engineering to the manufacture of power-generating equipment and offshore wind turbines.

NLMK's production assets are located in Russia, Europe, and the United States. The Company’s liquid steel production capacity is over 17 million tonnes per year, of which about 16 million tonnes are produced in Russia.

NLMK has the most competitive cash cost among global manufacturers; and one of the highest profitability levels in the sector. During the first six months of 2014, the company generated $5.4 billion in revenue; $1,1 billion in EBITDA; and a net profit of $332 million.

NLMK’s ordinary shares are traded on the Moscow Stock Exchange (ticker symbol: NLMK), and its global depositary shares are traded on the London Stock Exchange (ticker symbol: NLMK:LI).

For more information about NLMK Group, please visit www.nlmk.com/ru