NLMK Group (LSE: NLMK), Russia’s top steel-producing company and one of the most efficient steel companies in the world, has begun reconstruction of the Chemical Shop at Coke and Chemical Operations at the Lipetsk production site.

The project will significantly improve coke gas cleaning efficiency by 2017; halve air emissions from the chemical shop; and provide a 10% increase in chemical product output from coke gas processing.

Konstantin Lagutin, Vice President for Investment Projects, said:

‘The reconstruction of the chemical shop at Coke and Chemical Operations at Novolipetsk exemplifies a project with multiple goals in a variety of areas such as economic efficiency; occupational health and safety; and the environment. The new facility will not only boost chemical product volumes offered to external clients; it will also halve the shop’s hazardous air emissions. We plan to complete the reconstruction by H2 2016.’

Coke and Chemical Operations at Novolipetsk consist of a coke shop, where coke is produced through heating coal; and a chemical shop. In the chemical shop, coke off-gas is purified from coking products, including naphthalene, resins, ammonia, etc. for use as fuel in coke furnaces and NLMK’s CHP plant. Products extracted from gas are processed into benzol, ammonia sulphate, toluene, etc.

The reconstruction provides for the optimization of the setup of the chemical shop; improvement of a number of process schemes; and installation of the latest equipment. The productivity of the new shop will be 140,000 m³ of coke gas per hour.

About NLMK Group

NLMK Group is the largest steelmaker in Russia and one of the most efficient in the world. NLMK’s 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. The company generated $10.4 billion in revenue; $2.4 billion in EBITDA; and a net profit of $845 million in 2014.

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

Watch NLMK Group’s corporate films Special Steel and Steel of the 21st century

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.

The steel production volume of the Lipetsk site is approximately 18% of all steel produced in Russia, and approximately 80% of all steel products produced by NLMK Group.

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.

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

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