13 June 2017

NLMK continues to implement resource-saving PCI technology

NLMK continues to implement resource-saving PCI technology

NLMK Group, an international steelmaking company with operations in Russia, the USA and European Union, has started hot-testing the pulverized coal injection (PCI) unit at one of the largest blast furnaces of its Lipetsk plant, namely blast furnace No. 6 with a capacity of 3.1 million tonnes of pig iron per year.

This technology involves co-injecting natural gas and fine coal particles into the blast furnace, resulting in reduced coke consumption. Replacing expensive raw materials with cheaper alternatives, such as switching from coking coal to steam coal, reduces the cost of pig iron production approximately by 5%.

This resource-saving technology is being implemented at NLMK’s blast furnaces in turn. Previously, this technology was introduced at blast furnace No. 5 (2.7 million tonnes per year) and blast furnace No. 4 (1.8 million tonnes per year). Hot-testing of the PCI unit is due to begin at the largest and the most productive blast furnaces of NLMK’s Lipetsk plant, namely blast furnace No. 7 with a capacity of 4.3 million tonnes per year.

Konstantin Lagutin, NLMK Group Vice President for Investment Projects, said:

“By the end of the year, over 90% of the plant’s blast furnace capacities will be covered by this resource-saving PCI technology. The new unit will enable a 30% decrease in the consumption of expensive coke in the BF process; and a 50% reduction in the consumption of natural gas.  It’s a key Strategy 2017 project aimed at significantly cutting costs and optimizing the use of resources.”

Hot-testing is scheduled to end and start-up to begin in Q3 2017. PCI project capex for the two blast furnaces (No. 6 & No. 7) will amount to over 6.8 billion rubles.

About NLMK Group

NLMK Group is the largest steelmaker in Russia and one of the most efficient in the world.

NLMK Group’s high-quality steel products are used in various industries, from construction and machine building to the manufacturing of power-generation equipment and offshore windmills.

NLMK operates production facilities in Russia, Europe and the United States. The company’s steel production capacity exceeds 17 million tonnes per year.

NLMK has the most competitive cash cost among global manufacturers and one of the highest profitability levels in the industry. In FY2016, the Company generated $7.64 billion in revenue and $1.94 billion in EBITDA. As of 31 December 2016, Net debt/EBITDA stood at 0.36х. The company has an investment grade credit rating from S&P and Fitch.

NLMK’s ordinary shares with a 16% free-float are traded on the Moscow Stock Exchange (ticker "NLMK") and its global depositary shares are traded on the London Stock Exchange (ticker "NLMK:LI"). For more details on NLMK shareholder capital, please follow the link.

NLMK Group received the Steel Industry Leadership Award at the prestigious 2016 Platts Global Metals Awards held by S&P Global Platts, a leading international industry analytical periodical.