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29 November 2017

NLMK transformer steel for world’s most powerful nuclear icebreaker

NLMK Group, an international steel company with operations in Russia, the USA and the European Union, has shipped transformer (or grain oriented steel, GO) steel to Ruselprom, one of Russia’s leading electric machinery manufacturers. NLMK steel was used to make energy equipment for the most powerful nuclear icebreaker in the world, the Ural.

Steel for the stators of two main AC generators (36 MW each) for the Ural icebreaker was produced at NLMK Group’s Lipetsk site. The entire batch of over 90 tonnes has already been shipped to the client. Previously NLMK supplied GO steel used to make similar equipment for the Sibir (Siberia) nuclear-powered icebreaker.

Jointly with Krylov State Research Center, Ruselprom supplies electric machinery for the construction of all Russian icebreakers that were previously equipped predominantly with imported electric systems.

Ilya Gushchin, NLMK Group Vice President, Sales, said:

“NLMK Group and Ruselprom share a long history of successful cooperation, spanning over two decades. Our partners use NLMK’s electrical steel to make equipment for nuclear power stations, hydroelectric engineering and shipbuilding. The high quality of our transformer steel guarantees additional competitive advantages to all our clients in the high-tech product market.”

NLMK Group produces transformer steel at its Lipetsk production site and at VIZ-Steel in Yekaterinburg. NLMK share in the global transformer steel market is about 10%.

The Ural nuclear-powered icebreaker is the third of three vessels within the 22220 project, with a goal to ensure Russia’s year-round navigation in the Arctic seas. Laid down at the Baltic Shipyard in St. Petersburg (part of United Shipbuilding Corporation), the Ural will be delivered by 2022. The lead ship in the series, the Arktika (Arctic) was floated out in 2016; the Siberia was floated out in September 2017. These ships are designed to operate in both deep ocean waters and estuaries of polar rivers, meaning they can replace two types of vessels. Once commissioned, they will be the largest and the most powerful icebreakers in the world.

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 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 9M 2017, the Company generated $7.25 billion in revenue and $1.87 billion in EBITDA. As of 30 September 2017, Net debt/EBITDA stood at 0.3х. 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"). 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.

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.

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