1 August 2017

NLMK Group to supply 2 million tonnes of by-product for construction of Moscow Ring Road

NLMK Group, an international steelmaking company with operations in Russia, the USA and the European Union, has signed a two-year contract with road building company AVTOBAN for the supply of by-products that will be used in the construction of start-up facility #3 of the Central Ring Road in the Moscow Region (CRR-3).

The CRR is set to be a key link in the transport network of Moscow Region, as well as a hub for Russia’s rapid-transit highway network and a part of its international transport corridors. Start-up facility #3 will be 105.3 km in length.

Under the contract, NLMK Group will supply around 2 million tonnes of crushed stone, sand and gravel to AVROBAN from its Lipetsk site. These steelmaking by-products will be used as fundamental components for road dressing and in the cement mix, for creating temporary roads and sites for worker camps as well as asphalt plants.

Ilya Guschin, NLMK Vice President for Sales, said:

“NLMK Group and AVROBAN share more than a decade of mutually beneficial cooperation. Products supplied by NLMK have been used in the construction of the M4 Don federal highway, by-pass highways for Yelets, Yarkino, Odintsovo, an access road to Zhukovsky, and a roundabout road for Orekhovo-Zuevo, among other projects. We are thrilled to count AVROBAN as one of our reliable partners and hope we will share more successful projects in the long run.”

The section of the CRR-3 under development will connect the new Moscow-Saint-Petersburg highway with federal highway M-7 Volga. This new four- and six-lane highway will pass through the Solnechnogorsk, Dmitrov, Pushkino, Schelkovo and Noginsk districts, and the urban district of Chernogolovka.

Construction work is already under way on a section of the CRR that is more than 30 km in length. Completion of the construction of the start-up facility is scheduled for 2019.

About AVTOBAN

Road-building company AVTOBAN unites 16 affiliates and managed companies that work in road construction. The company operates in 15 regions and 6 federal districts, and is one of the largest general contractors of the state-owned ’Russian Highways‘ company and the Federal Road Agency of the Ministry of Transport of the Russian Federation.

The organization employs more than 5000 staff members and boasts a fleet of modern, high-performance road-building equipment, vehicles and machinery made up of 1200 units. Over the years, the company's branches have constructed 4,200 km of road with permanent surfacing. AVTOBAN is the first Russian road-building enterprise to receive a ranking by Moody’s Investors Service, one of the largest ranking agencies.

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. 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.

NLMK Group’s photos and videos are available for downloading from our mediabank at media.nlmk.com