NLMK acquires Indian electrical steel service center

Thu, 06 October 2011

Russian steelmaker NLMK has announced that it has acquired an India-based electrical steel service center National Laminations for a total consideration of US$8 million. The acquisition will improve NLMK's position in the Indian market as one of the leading suppliers of grain-oriented electrical steel, controlling production from crude steel production to delivery to the final customer.

National Laminations is a grain-oriented steel processing and distribution company with processing and warehousing capacities of 16,000 mt and 15,000 mt per year, respectively. The company supplies processed materials to a wide range of customers, including local and international transformer producers.

Tags: flats , India , Russia , CIS , Indian Subcon , NLMK , M&A , steelmaking , South Asia
(sourced steelorbis)

Russian steelmaker NLMK to issue 50 bln rbl bonds

Wed Oct5, 2011

MOSCOW(Reuters) - The board of Russian steelmaker NLMK has approved a 50-billion rouble ($1,53 billion) 10-year bond issue, the steelmaker said in a statement on Tuesday.

The lead managers are Gazprombank, ZENIT Bank and Rosbank, it said.

"This new instrument will help NLMK to attract long-term capital if required to finance projects such as its technical upgrade program, as well as for other corporate purposes." ($1 = 32.604 Russian Roubles)

NLMK to build pelletizing plant at Stoilensky

Saturday, 19 Feb 2011

NLMK has approved the construction of a pelletizing plant at Stoilensky, its fully owned subsidiary with a capacity of 6 million tonnes of iron ore pellets per year.

The project will encompass the construction of the pelletizing plant and the development of a number of infrastructure facilities to supply raw materials for the production of high grade pellets. A 30% increase in iron ore output as compared to 2011 level at Stoilensky operating mine is planned to ensure the required raw material supplies for the pelletizing plant.

The project is part of the Group’s strategy targeted at strengthening vertical integration and is being executed as part of the third stage of NLMK Technical Upgrade Program. Construction is expected to be completed in 2014. The plant will be able to fully cover the Company pellet requirements as early as 2015, even considering the launch of the 3.4 million tonne Blast Furnace 7 at Novolipetsk, the main production facility of the Group located in Lipetsk.

The project will be jointly executed with Siemens VAI/Outotec, a German-Finnish consortium, responsible for supplying the required equipment and technologies, as well as rendering other construction-related services.

Investments into Stoilensky operating and infrastructure facilities over 2011 to 2014 will total some RUB 39 billion.

Starting from 2015, Stoilensky average annual output of saleable iron ore will be as follows:
1. Sintering ore - 2 million tonnes
2. Iron ore concentrate - 11 million tonnes
3. Iron ore pellets - 6 million tonnes
Ensuring NLMK 100% self sufficiency in iron ore raw materials.

During the Stoilensky pellet plant construction, supplies of iron ore pellets to Novolipetsk will be made under long term contracts between NLMK and Metalloinvest Holding.

Tags:Siemens VAI, Outotec,investment, iron ore concentrate, long term agreement, Metalloinvest Holding,

Russia’s NLMK secures coking coal supplies

Friday, Jan 28, 2011
Russian steel producer NLMK has won the right to develop the Usinskiy-3 coking coal deposit in the north of the country, having offered Rbs900 million ($30.2 million) for the license at an auction on 21 January.
Usinskiy-3 reserves will allow NLMK to rely on its own coal resources in future, as at present the company does not produce any coal and has to buy on the open market.
Usinskiy-3 is a large coking coal deposit located in Komi, a region in the north of Russia. Usinskiy-3 contains more than 227million tonnes of high-quality coking coal.

NLMK plans to have the necessary infrastructure ready to start production at Usinskiy-3 by 2016, and expects to bring it to capacity of 4.5 million tonnes per year in 2018.
The project will require Rbs45.5 billion of investment, according to NLMK.
Currently, NLMK consumes about annual 5.5 million tonnes of coking coal and has to buy this in the market, the firm told Argus.

NLMK gets coal mostly in the domestic market, with smaller amounts coming from outside Russia. The company imports 600,000 tonnes of coking coal per year from the US. (sourced:Argus Media)