As a result of measures taken in 2013 to improve energy efficiency, NLMK Group (LSE: NLMK) has saved more than RUB 850 million.

NLMK Group’s Strategy 2017 forecasts that its energy efficiency improvements will lead to an annual increase in EBITDA of around USD 88 million.

At the main production site in Lipetsk, which accounts for around 80% of the Group’s entire production, specific energy intensity was reduced to 5.67 Gcal per tonne of steel produced in 2013, compared with 5.74 Gcal for the previous year. The reduction in specific energy intensity at Novolipetsk has been achieved thanks to:

·         increasing the share of electricity generated onsite to 53% through more efficient utilization of secondary fuel gases at the site’s power plants (the share of electricity produced from secondary gases has increased from 71% to 78%);

·         reducing the per unit consumption of fuel and energy resources at the steelmaking and rolling facilities and at the various energy production units through increasing capacity, optimizing equipment operating methods, and implementing energy saving measures;

·         reducing coke consumption in pig iron production and adopting the pulverized coal injection method for Blast Furnace No. 5;

·         increasing the use of steam from recovery plants.

“The Group will achieve further reductions in the energy intensity of steel production through the phased implementation of measures aimed at maximizing the effective use of secondary energy resources, streamlining operational processes, and upgrading facilities. The company’s success in introducing the best technologies for optimizing energy consumption, reducing energy costs, and making rational use of resources will increase efficiency across the Group’s entire production chain, and is viewed by the company as being of strategic importance,” announced Alexander Starchenko, Vice President for Energy at NLMK.

Further energy saving work across NLMK Group companies will include upgrading the production lighting system and introducing an efficient infrared heating system for defrosting bulk cargo, as well as localized heating for equipment and premises.

In 2012, NLMK Group received the ISO 50001 Energy Management Systems certificate confirming that it meets international standards – the first company in the Russian steel industry to do so. The certification of NLMK’s energy management system, testifying to its compliance with the ISO 50001:2011 international standard, is an endorsement of the company’s success in employing the best technologies for optimizing energy consumption and making rational use of energy resources.

About NLMK Group

NLMK Group is a vertically integrated steelmaking company, and Russia’s leading manufacturer of steel and HVA rolled products. NLMK Group’s high-quality steel products are used in a variety of industries, from construction and machine-building to the manufacture of power generation equipment and offshore windmills.

NLMK’s production facilities are located in Russia, Europe and the USA. The Company’s crude steel capacity is over 17 mt per annum, of which approximately 16 mt are located in Russia. The Company generated $12.2 billion in revenue and $1.9 billion in EBITDA in 2012.

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

Media contact info:
Sergey Babichenko
+7 (916) 824 6743
babichenko_sy@nlmk.com

Investor Relations contact info:
Sergey Takhiev
+7 (495) 915 1575
tahiev_sa@nlmk.com