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23 October 2015

NLMK Kaluga expands its product portfolio

NLMK Kaluga, the EAF mini-mill which is part of NLMK Group’s Long Products Division, significantly expanded its product portfolio last year by introducing 25x4 angles; #10 rebar; and 75x6 angles to its offering to customers in Russia’s Central and Volga Regions.

In 2014 the facility fulfilled orders for 288,400 tonnes of billets; 625,000 tonnes of rebar; and 2,800 tonnes of angles.

New technological solutions implemented at the rolling mill enable a simple switch from manufacturing of one product at any given moment, depending on market conditions and customer demand.

In a move to further expand its product offering to the construction sector, NLMK Kaluga plans to introduce new gauges of sections as well as 63х6, 50х5, 100х9 and 90х8 angles.

Alexander Burayev, NLMK Long Products General Director, said:

“Given the current market conditions NLMK is well placed to leverage its key competitive advantages of technological flexibility and proximity to our core customer base and key feedstock suppliers. Our new plant delivers high-quality steel products that are in great demand in the Russian construction sector allowing us to compete against imported steel products effectively.”

The launch of NLMK Kaluga in July 2013 was the event of the year for Russian ferrous metallurgy. The mini-mill concept is based on locating EAF steelmaking and rolling operations close to sources of raw materials and consumers of finished steel products. Alongside new products, the plant’s product mix includes #12, 14, 16, 18, 20, 22 and 25 rebar.

About NLMK Kaluga

NLMK Kaluga is a next-generation EAF mill, part of NLMK Group’s Long Products Division. NLMK Kaluga was launched in July 2013. Investment in the construction of the plant totaled more than RUB 38 billion, of which around RUB 7.5 billion was spent on environmental protection measures.

The plant is located in the Vorsino industrial park in Kaluga region, which has 33 companies among its residents.

The plant is located in the heart of the Central Federal District; the region with the largest market for long steel products in Russia. The plant is 73 km from Moscow by road, and a little over 90 km by rail. The central region accounts for approximately 30% of long steel consumption in Russia, with only 9% of its production. The region benefits from a surplus of scrap, NLMK Kaluga’s key feedstock material, of around 2.3 million tonnes per year. Scrap is supplied by NLMK Group’s in-house scrap collecting network, Vtorchermet NLMK.

NLMK Kaluga’s steelmaking and long product capacities are 1.5 million tonnes and 0.9 million tonnes per annum, respectively. The facility is uniquely equipped in Russia to produce the widest range of premium-grade long products for use in construction.

About NLMK Long Products

NLMK Long Products (part of NLMK Group), is the leading manufacturer of long products and metalware on the Russian market.

NLMK Long Products companies make up an integrated production chain from the collection and processing of ferrous scrap to the manufacture of HVA steel products – rebar, wire rod and metalware.

Long Products Division’s production facilities produce up to 3.7 million tonnes per year of liquid steel; and 2.9 million tonnes per year of rebar and wirerod that is both sold to the market and reprocessed at the company’s in-house metalware operations that have a capacity of 0.5 million tonnes per year.

NLMK Long Products key companies are NSMMZ (EAF steelmaking and long products) and NLMK Metalware located in the Sverdlovsk region, and NLMK Kaluga (EAF steelmaking, rebar and sections) located in the Kaluga region.

Raw materials are provided by Vtorchermet NLMK, one of the largest associations of scrap-collecting companies in Russia operating in different regions across the country.

In 2014, NLMK’s Long Products Division produced 2.7 million tonnes of steel, up 21.1% on the same period a year earlier. Steel product sales grew by 25.4% to 2.6 million tonnes. Scrap collection at in-house capacities totaled 2.3 million tonnes.

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