NLMK purchases new equipment to upgrade rolling facilities

NLMK has signed contracts with SMS Siemag AG and Sytco AG, agreeing the supply of new equipment for its Lipetsk-based rolling operations worth a total of EUR15.3 million.

SMS Siemag AG (Germany) will supply equipment necessary for the modernization of the hot strip mill run-out table, which will be delivered between August 2011 and February 2012. The facility will be upgraded on a gradual basis, culminating in 2013 when the capacity of the hot strip mill will have been increased by 45 000 tonnes, up to 5.7 million tonnes per annum.

Under the agreement with Sytco AG (Switzerland), new equipment for the roll preparation plant in the Cold Rolled & Coated Flats Shop will be supplied in April 2012. The project will ensure high quality roll surface finishing and rebuilding for the Company’s new cold rolling facilities. NLMK plans to install the equipment in Q4 2012 as part of the second stage of its Technical Upgrade Program.

For reference:
The main objectives of the 2nd stage of NLMK's Technical Upgrade Program for the period from 2007 to 2012 are:
- To increase liquid steel capacity by 40% up to 17 mln tpa, including from 9 to 12.4 mln t at the Lipetsk site.
- To achieve maximum self-sufficiency in basic raw materials.
- To increase finished rolled product output from 8.9 to 10.7 mln tpa due to revamping and construction of new rolling facilities producing finished flats.
- To increase labour productivity and reduce environmental impact.