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25 May 2012

NLMK DanSteel A/S invests itself out of crisis

NLMK DanSteel A/S has achieved a 31% increase in revenue for 2011.

The result of primary operations for the same period is, however, -71 million DKK, which is significantly lower than expected in the financial statements for 2010.

The slab prices have been increasing during the period, which together with a greatly increased price competition and overcapacity in the industry have squeezed profits in the industry in general strongly.

Taken alone, the result is unsatisfactory, but when the current market conditions are taken into the overall picture, then the result for 2011 is considered to be less unsatisfactory. This was the conclusion of the Board meeting in NLMK DanSteel A/S held May 25, where the financial statements for 2011 were approved.

NLMK DanSteel A/S still follows its investment strategy, thus in 2011 having a significant focus on the project with the replacement of the rolling mill to a new broader and stronger rolling mill. This project is expected to be finalized in the second half of 2012.

This investment represents approximately 750 million DKK and is heavily instrumental for continued improvement of NLMK DanSteel A/S 'competitiveness, as it will provide NLMK DanSteel A/S with access to new segments and products.

About DanSteel A/S

DanSteel A/s’ principal activities are production and sale of steel plates, including plates which are to be finished by blasting and priming as well as fitted plates.

The plates are made from slabs of which the main part is manufactured by OJSC Novolipetsk Steel (NLMK) in Russia.

The plates are sold mainly in Northern Europe.