NLMK INCREASES ENERGY SELF-SUFFICIENCY

Specialists at NLMK Group’s Lipetsk production site have begun hot testing a new turbine generator which will enable the company to increase electricity generation by 11%, or over 370 million kWh. It will also reduce electricity expenses by 2.1%, or RUB 440 million per year.

The launch of this modern turbine generator, commissioned to replace the previous outdated one, will result in a significant increase in the Lipetsk production site’s energy self-sufficiency, growing from 52% to 58%. In addition, the installed capacity of the facility’s power station will increase by 50 MW to 482 MW.

NLMK has invested approximately RUB 1 billion in constructing the new turbine generator, which was manufactured at Kaluga Turbine Works in Russia.

“By developing NLMK Group’s self-sufficiency in energy resources, increasing the proportion of electricity produced from secondary resources and applying energy-saving technologies, we are not only reducing the company’s environmental impact, but also increasing efficiency in production as a whole which is a key Strategy 2017 objective”, commented Alexander Starchenko, Vice President for Energy.

Over the past three years, NLMK has implemented a range of major investment projects aimed at improving energy efficiency during production and increasing the proportion of electricity produced from secondary resources. In particular, a new 150 MW-capacity recovery cogeneration plant has been constructed at the Lipetsk site, as well as a cutting-edge air separation unit providing 34,000 cubic metres of oxygen per hour. An air separation unit has also been launched at VIZ-Steel (Yekaterinburg), providing 8,000 cubic metres of nitrogen per hour.

The implementation of these and other projects has resulted in energy savings of RUB 850 million in 2013. Specific energy intensity over this period decreased by 1.2%, reaching 5.67 Gcal/t.

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 m tpa, of which approximately 16 m t are located in Russia. The Company generated $10.9 billion in revenue and $1.5 billion in EBITDA in 2013.

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”).