Overview
Novolipetsk Steel (NLMK) is a world class steel producer with operations spanning mining, steelmaking and rolling.
Our main production facilities in Lipetsk, in the centre of European Russia, are within 350 km of Stoilensky GOK, our main iron ore supplier, and close to key Russian customers and major transport routes.
We are among the world’s most profitable steel companies with sales revenue of USD 7.719 billion and an EBITDA margin of 44% in 2007. Last year, we produced 9.1 million tonnes of steel.
NLMK is a vertically integrated steel producer and its operations are conducted through the following major segments:
Steelmaking and rolling
Our main steelmaking and rolling facility is located in Lipetsk, in the centre of European Russia. Total steelmaking capacity is 9.3 million tonnes of crude steel per annum.
In the first quarter of 2006, we acquired 100% of the Danish steel rolling company, DanSteel A/S. In August 2006, we completed the acquisition of a 100% stake in VIZ-Stal, the second largest Russian electrical steel manufacturer located in Yekaterinburg. In 2007, NLMK and VIZ-Stal had a combined share of 9% of the global electrical steel market and about 75% of the domestic market.
Mining
We own 97% of Stoilensky GOK, Russia’s third-largest iron ore producer.
In 2005, we acquired from the Russian state a license for a large coking coal deposit Zhernovskoe-1 with 240 million tonnes of coal reserves. This is expected to be operational by 2009.
In 2006, we purchased a 94% interest in coke producer JSC Altai-koks, a leading Russian coke-chemical plant.
Our mining segment also includes OJSC Dolomite, a furnace dolomite producer, and OJSC Stagdok, a fluxing limestone producer.
Infrastructure
We own a 100% stake in LLC Independent transport company (NTK), a key logistics asset of the Group which ensures timely delivery of raw materials for steel production and delivery of finished goods to consumers both in Russia and abroad. LLC NTK coordinates cooperation with both OJSC Russian Railways and ports administration with respect to export destined supplies.
We also operate Russia’s fifth largest sea port, Tuapse, on the Black Sea, that enables us to ensure shipments of our exports to the region.
In addition, we are increasingly self sufficient in electricity, we supply 43% of our main facility's energy needs.
Our diverse range of products includes pig iron, slabs, hot-rolled steel, and a variety of value-added steel products, such as cold-rolled sheet, electrical steel and other specialty flat products. We have the largest share of Russia’s cold-rolled and pre-painted steel market, and are one of Europe’s largest producers of electrical steel.
We are now concentrating on expanding our high value added product range, improving the technical excellence of our facilities and quality standards, and therefore on further increasing our enterprise value.
