NLMK Group, Russian Ministry of Natural Resources, Federal Supervisory Natural Resources Management Service and Lipetsk Region sign cooperation agreement
NLMK Group, the Ministry of Natural Resources and the Environment of the Russian Federation, the Federal Supervisory Natural Resources Management Service (Rosprirodnadzor) and the Administration of the Lipetsk Region have signed a four-way Cooperation Agreement in sustainable development. The Agreement, which forms part of the National Ecology Project, was signed by Grigory Fedorishin, NLMK Group President and CEO, Svetlana Radionova, Head of Rosprirodnadzor, Denis Khramov, Deputy Minister of Natural Resources and the Environment, and Igor Artamonov, Acting Head of the Administration of the Lipetsk Region.
The signing ceremony was hosted in the margins of the 17th International Steel Summit, supported by the Russian Steel Association. This year, the Summit travels outside of Moscow for the first time since 2003, to the steelmaking region of Lipetsk, the home of NLMK Group’s flagship production site.
The Agreement calls for a consolidated effort by the parties to efficiently address sustainability challenges.
Svetlana Radionova, Head of Rosprirodnadzor, said:
“Business-government cooperation to achieve the environmental goals set by the country's leadership is not a formality. Projects are successfully on track. This agreement will kick-start the Federal Clean Air Project. This is the first case of a public-private partnership in Russia aimed at improving the quality of the environment through cutting emissions.”
Under the agreement, NLMK Group will implement a number of upgrade and new construction projects. The document also sets targets to reduce gross air emissions and emissions of specific substances monitored by Rosprirodnadzor. Total investment in such projects will exceed RUB 110 bn until 2023, including around RUB 20 bn towards environmental protection equipment.
Grigory Fedorishin, NLMK Group President and CEO, said:
“NLMK is guided by the principle of achieving the best available technology (BAT) level in executing its upgrade projects. BAT implies the most efficient equipment and technical solutions that ensure a reduced environmental footprint. NLMK Group has invested more than $1 bn in environmental projects since 2000. This enabled us to cut gross emissions by 23% to achieve the Russian BAT level, while growing production by 60%. The goal for the next five years is to reach the EU BAT level.”
About NLMK Group
NLMK Group is the largest steelmaker in Russia and one of the most efficient in the world.
NLMK Group’s steel products are used in various industries, from construction and machine building to the manufacturing of power-generation equipment and offshore wind turbines.
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 12M 2018, the Company generated $12 billion in revenue and $3.6 billion in EBITDA. Net debt/EBITDA stood at 0.25х. The Company has investment grade credit ratings from S&P, Moody’s, Fitch and RAEX (Expert RA).
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"). The share capital of the Company is divided into 5,993,227,240 shares with a par value of RUB1. For more details on NLMK shareholder capital please follow the link.
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