NLMK Group, a leading manufacturer of steel and rolled products with high added value in Russia, has upgraded air-blowing equipment used in blast furnace operations in Lipetsk. This upgrade will enable NLMK to reduce its environmental footprint and save approximately RUB 210 million through lower energy consumption.

Three modern turbo compressors were launched at NLMK’s Heat and Power Plant as part of the project. They will supply air under high pressure first to the hot-air units and then to Blast Furnaces 3, 4 and 5. Hot testing of the third and final turbo compressor began in September.

Alexander Starchenko, NLMK Vice President for Energy, said:

“By upgrading our equipment, we are meeting a challenge we announced in Strategy 2017 – the consolidation of our leadership in terms of key indicators through enhanced efficiency of all production processes. Substituting obsolete equipment with high-performance modern equivalents increases operational stability and reduces energy consumption. Savings for each of the three units will exceed RUB 70 million per year.”

Investment in the project of installing the three modern turbo compressors totals RUB 1.86 billion.

Over the last three years, NLMK Group has implemented a number of large investment projects aimed at increasing the energy efficiency of operations and increasing the share of electric energy generated using by-products. An example is the new 150 MW Recovery Co-generation Plant, built at the Lipetsk site. It was built together with a modern Electric Air-blowing Station installed to meet the needs of Blast Furnaces 6 and 7. NLMK also built a modern Air Separation Unit that produces 34,000 cubic meters of oxygen per hour.

VIZ-Steel (Yekaterinburg) launched an Air Separation Unit to produce nitrogen with a capacity of 8,000 cubic meters per hour.

The combined savings that these and other projects have provided for NLMK Group on the purchase of energy resources was over RUB 850 million in 2013 alone. 

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.
Currently, the steel production volume of the Lipetsk site is in excess of 12 million tonnes per year, or approximately 18% of all steel produced in Russia, and approximately 80% of all steel products produced by NLMK Group.
Since 2000, Novolipetsk has invested over RUB 200 billion into facility upgrades allowing it to double production volumes, enhance productivity, to expand product mix significantly and to improve the environmental footprint of the site.

NLMK is making continuous efforts to increase productivity and energy efficiency. In 2013, specific energy consumption per tonne of steel totaled 5.67 Gcal, a 20% improvement compared to 2000. This brought NLMK closer to the level of best available technologies (5.4 Gcal/t).

About NLMK Group

NLMK Group is one of the leading steelmakers in the world, and the largest steel producer in Russia. NLMK’s production facilities are located in Russia, Europe and the USA. The Company’s crude steel capacity is over 17 million tonnes per year, of which approximately 16 million tonnes are located in Russia. NLMK has modern production capacities that are on par with leading international manufacturers in terms of technology.

The Group’s vertical integration allows for control of the entire production chain, from mining to final processing and delivery to our customers.

The Group produces a wide range of flat and long steel products. NLMK is the world-leading supplier of slabs and transformer steel, and the largest Russian supplier of HVA products, including pre-painted steel, galvanized steel and electrical steel, as well as long products.

The Company has a diversified sales topography, delivering products to over 70 countries around the world.

NLMK has the most competitive cash cost among global manufacturers; and one of the highest profitability levels in the sector. The Company generated $10.9 billion in revenue and $1.5 billion in EBITDA in 2013.

NLMK is the only steelmaker in Russia with an investment grade credit rating from international rating agencies. It is included in the TOP10 for corporate governance and transparency among Russian public companies by international rating companies.

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”).

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

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