NLMK Lipetsk, NLMK Group's flagship production site, has embarked upon a large-scale overhaul of its steelmaking capacities, namely BOFs and associated dedusting equipment in BOF Shop No.2.

The overhaul will increase the shop's productivity by 18% from 8.5 m t to 10 m t of steel per year and cut air emissions by 70%. Investment in the project will total RUB 23 bn.

The two-phase project will be completed in late 2020. NLMK Lipetsk has already started the first phase of the overhaul, which is expected to take around five months: the 300-tonne BOF No. 2 will be replaced with a 330-tonne one, off-gas ducts will be upgraded, and an efficient BOF gas capturing and purification system will be installed. The second phase, involving the replacement of BOF No. 3 with a more efficient one, will begin in 2020.

Konstantin Lagutin, NLMK Group Vice President, Investment Projects, said:

“The BOF overhaul in BOF Shop No. 2 is one of the milestone projects of our new strategy. Together with other projects aimed at developing our blast furnace and steelmaking operations, it will enable a 1 mtpa increase in NLMK Lipetsk's steel output. At the same time, the use of advanced environmental and energy-saving solutions will reduce the company's environmental footprint. For instance, the introduction of best available technologies (BAT) will result in a 2.5-fold increase in gas purification efficiency. Despite the growth of output, these operations will be practically emission-free.”

About NLMK Group

NLMK Group is the largest steelmaker in Russia and one of the most efficient in the world.

NLMK Group’s steel products are used in various industries, from construction and machine building to the manufacturing of power-generation equipment and offshore wind turbines.

NLMK operates production facilities in Russia, Europe and the United States. The Company’s steel production capacity exceeds 17 million tonnes per year.

NLMK has a highly competitive cash cost among global manufacturers and one of the highest profitability levels in the industry. In 12M 2018, the Company generated $12 billion in revenue and $3.6 billion in EBITDA. Net debt/EBITDA stood at 0.25х. The Company has investment grade credit ratings from S&P, Moody’s, Fitch and RAEX (Expert RA).

NLMK’s ordinary shares with an 18.6% free-float are traded on the Moscow Stock Exchange (ticker "NLMK") and its global depositary shares are traded on the London Stock Exchange (ticker "NLMK:LI"). The share capital of the Company is divided into 5,993,227,240 shares with a par value of RUB1. For more details on NLMK shareholder capital please follow the link.

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