NLMK Launch New Steel Rolling Facility

In December 2010 the NSMMZ Rolling Facility in Berezovsky (NLMK-Long Products, NLMK subsidiary) obtained a favourable report from the Federal Service for Environmental, Technological and Nuclear Supervision of the Russian Federation in addition to authorization for its launch.

The facility, which has the capacity to process approximately 1 million tonnes of steel per year, is a vital part of the NLMK-Long Products production chain, linking scrap collecting enterprises with EAF steelmaking, long products and hardware manufacturing units. The project parameters and process equipment make it one of the most state-of-the-art and high-tech in Russia.

The facility is equipped with advanced equipment from leading global manufacturers - Danieli, SMS Meer, Sund Birsta. The basic process equipment is a high-capacity two-strand rolling mill 150 with a rolling speed of up to 110 m/s, ensuring high quality of the finished product. The new unit will produce coiled rebar (## 6 to 16), as well as 5.5-22 mm wire rod, with the target of further developing the Company's metalware production.

During start-up operations, the Company mastered the production of a wide range of rebar and wire rod products. For example, NLMK-Long Products was the first in Russia to launch the production of class A500C heat-strengthened reinforcing bars in coils with the diameter of 6.0 to 12.0 mm which are in high demand from the construction industry. Moreover, NLMK-Long Products has started the production of wire rod for cold heading, i.e. for hardware manufacturing by cold die-forging, as well as wire rod made from high-carbon and special welding steel grades for the Russian market.

Commissioning and further upgrades to the shop will allow NLMK-Long Products to achieve a total long products capacity of over 2 mtpy, strengthening its position in the long products market and providing the Company with a 20% share of the Russian rebar market and a 16% share of the Russian wire rod market. Subsequently, once construction of the Kaluga EAF Mini-Mill is completed, the Company plans to increase its rebar market share up to 25%.

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