Procurement

Information about NLMK’s public procurement procedures and those of its subsidiary companies is available on the NLMK Trading House website. See the Consolidated Procurement and Procurement at NLMK Group Companies sections.

NLMK’s procurement policy is applied in support of the joint-stock company’s economic interests, to maintain the competitive advantage we enjoy due to low production costs, high profitability in the sector, and successful programmes to upgrade and increase the productivity of our industrial facilities.

The goal of our procurement policy is to purchase products, labour, and services while minimizing risk and maximizing favourable terms for the Company, to be carried out using the latest technologies and materials, while maintaining a balance in terms of price and quality.

For that purpose, the company’s procurement processes facilitate competition among providers of products, labour, and services; keep that competition at an appropriate level for procurement; facilitate objectivity, impartiality, and transparency in procurement procedures; and help guarantee relationships with all suppliers that are grounded in fairness and equality.

PROCUREMENT POLICY PRINCIPLES

  • The principle of competition. Procurement is carried out competitively by comparing proposals from various suppliers according to previously confirmed criteria and selecting the best proposal.
  • The principle of openness. A regulated, competitive purchasing environment assumes equal rights for all competitors and allows suppliers to focus on making decisions that will allow them to achieve their business goals.
  • The principle of equality. The terms for procurement procedures, and the methods, criteria, and processes used to determine the winners, are set in advance and are the same for all competitors.
  • The principle of economy. Procurement is carried out at the lowest possible expense.
  • The principle of efficiency. The best possible outcome of procurement is obtaining the goods, labour, or services we need, of the required quality, in the required quantity, at the best possible economic terms for the company.
  • The principle of responsibility. Authorized company employees are responsible for all contractual clauses they sign, and no authorized individual can be pressured to violate contractual terms.
  • The principle of uninterrupted activity. The company and its suppliers must be confident that commercial relationships will last.
  • The principle of mutual guarantees. At the start of every commercial relationship between the company and its suppliers, guarantees are provided that goods, labour, and services will be delivered and paid for.
  • The principle of confidentiality. The company applies the same efforts in protecting access to outside parties’ information as it does with respect to its own confidential information whenever a partner requires confidentiality for the information they provide.
  • The company’s preferred form of payment is payment on delivery with payment deferral. The company guarantees timely payment to its partners.
  • The principle of informed decision-making. The company strives to maintain a wide-reaching database on suppliers and manufacturers.