Steel output during 2014 at Novolipetsk, NLMK Group’s main production site in Lipetsk, reached an all-time high of 12.56 million tonnes over the 80 years of the plant’s history. Record performance was achieved at all stages of production at Novolipetsk.

Steelmaking capacities were running at 100%, ensuring output during 2014 increased by 1.3%, year-on-year. The all-time absolute record was set in Q4 when the plant produced 3.4 million tonnes of steel, a 6.4% year-on-year increase.

Sergey Filatov, Novolipetsk Managing Director, said:

“Over the previous years, the increase in the plant’s output was ensured by investment into the expansion and modernization of capacities. In the last 14 years, NLMK has had a technological break-through: it has successfully implemented a technical upgrade programme, renovating technologies and growing production capacities by over 50%. This has allowed us to pass to the next stage: expanding the efficiency of technological processes and productivity by relying on the plant’s internal resources. We are already witnessing the success of this new stage through record production volumes and significant cost cutting. We are convinced that the plant’s further efforts in this direction will allow NLMK Group to strengthen its leadership in the industry and become the most efficient company in the world.”

In 2014, record performance was achieved at all production stages at Novolipetsk.

Sintering operations: Record output achieved since the launch of the sinter plant in 1964. In 2014, skip sinter output totaled 13.77 million tonnes (+2.5% year-on-year). These exceptional results were made possible by a series of measures to increase efficiency; use of advanced technological process control methods; and improvements in equipment performance.

Coke and chemical operations: Record performance in optimizing raw material consumption was achieved, with dry coal charge consumption per tonne of dry bulk coke reaching a record low of 1317 kg per tonne.

Blast furnace operations: Productivity of all blast furnaces was increased as a result of improved pig iron smelting technology; mastering pulverized coal injection; and increased operational efficiency. Daily output increased by 2.3% year-on-year to reach an average of 36,000 tonnes of pig iron. Average daily production of Blast Furnace #7, the most modern BF in Russia, increased by 15.1% to 11,900 tonnes per day. As a result of projects aimed at improving resource use efficiency, metallurgical coke consumption in blast furnace operations in 2014 was reduced to 428 kg/t of pig iron (-17 kg/t year-on-year).

Steelmaking operations: The highest productivity over the entire history of BOF operations at the Lipetsk site was achieved. 12.56 million tonnes of steel (+1.3% year-on-year) was produced in 2014. Output of slabs with special dimensions featuring superior chemical composition, the bulk of which is supplied to the domestic market for the production of large diameter pipes, increased by 30% to 850,000 tonnes.

Rolling operations: Finished product output spiked in 2014. Deliveries of galvanized steel increased by 1.8% to reach 0.59 million tonnes and deliveries of pre-painted steel increased by 4.4% to reach 0.51 million tonnes. Production of transformer steel with 1st choice surface quality reached a record 91.5% vs. 90.2% in 2013. Transformer steel deliveries increased by 18% to reach 92,800 tonnes. Output of top transformer steel grades totaled 98.9%, beating the previous record of 97.7% set in 2010.

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.

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.

Novolipetsk’s high-quality steel products are used in various strategically important industries in Russia and abroad.

About NLMK Group

NLMK Group is a vertically integrated steel company and Russia’s leading manufacturer of steel and one of the most efficient steel companies 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. The Company generated $5.4 billion in revenue, $1.1 billion in EBITDA, and $332 million in net profit in H1 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).

Media contact info:
Sergey Babichenko
+7 (916) 824 6743
babichenko_sy@nlmk.com
Investor contact info:
Sergey Takhiev
+7 (495) 915 1575
tahiev_sa@nlmk.com