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Novolipetsk Steel

May 25, 2015

NLMK Kaluga rebar certified for export to Europe

NLMK Kaluga, the next-generation EAF mini-mill (part of NLMK Group’s Long Products Division), has obtained German national standard DIN 488 certification for its 10 to 25 mm diameter class B500B rebar.

Products were tested by Technische Universität München, following which NLMK Kaluga received a certificate of compliance valid until 2020.

This certification enables use of NLMK rebar in not only the German construction sector, but also in other European countries as well.

Alexander Burayev, NLMK Group Director for Long Products and Metalware, said: “The manufacture of steel products that are compliant with the highest requirements is a priority for all NLMK Group companies. The certification confirming the compliance of our rebar with DIN 488-1 requirements guarantees a high level of NLMK Kaluga product quality and opens up new opportunities for expanding the plant’s sales markets.”

NLMK Kaluga, the next-generation EAF mini-mill, was launched in July 2013. 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 for the production of the widest range of premium-grade long products for use in construction in Russia.

Alongside sections, the plant’s product mix includes #12, 14, 16, 18, 20, 22 and 25 rebar. By the end of the year, the plant plans to introduce 50õ5, 100õ8 and 90õ7 angles.

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 73 km from Moscow by road, and a little over 90 km by rail.

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 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 2.7 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 in 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.

NLMK Long Products key companies are NSMMZ (EAF steelmaking and long products) and NLMK Metalware (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.

Long Products Division’s production facilities have production capacity to produce 3.7 million tonnes per year of liquid steel; 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 with a capacity of 0.5 million tonnes per year.

In 2014, NLMK’s Long Products Division produced 2.7 million tonnes of steel, 21.1% up on the same period a year earlier. Steel product sales grew by 25.4% to 2.6 million tonnes. Captive scrap collection totalled 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. 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).

Media contact info:
Sergey Babichenko
+7 (916) 824 6743
Investor contact info:
Sergey Takhiev
+7 (495) 915 1575

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