Russian Steel Maker Idles Two Blast Furnaces

NLMK announces that it is idling two blast furnaces with total capacity of approximately 2.5 million tonnes of pig iron. The operations of blast furnaces #2 and #4 will be stopped on November 14 and 18 respectively. The operation of the furnaces will be restarted at the end of Q1 and Q2 2009.

As a result of the temporary shut-down, total pig iron production volume will decrease by 325,000 tonnes in Q4 2008 or by 13.5 % from the previously planned volumes.

Alexei Lapshin, NLMK’s CEO, commented on the decision as follows:
“The global financial crisis is having a significant impact on the real economy. Primarily, this is reflected in lower consumption of energy, steel and other basic materials. Our Company is well prepared to respond to the worsening situation. The decision to halt two blast furnaces is a step in this direction. We are currently working on adjusting the Company’s previously announced investment programme, as well as on cost reduction plans and optimization of production processes. As one of the most efficient global steel producers, NLMK will continue to implement its Sustainable Growth Strategy as the market environment improves”.