NLMK.L Regulatory News (NLMK)

29 July 2011

Press-release

Announcement

Further to the announcement made by NLMK on the 8th of July 2011 regarding the transformer failure at its Urals-based Long Steel Division plant. The Electric Arc Furnace ("EAF") halted as a result of the incident is expected to be brought back online in December 2011. The negative impact of the incident on the Long Steel Division' billets output is estimated at 450,000 t in 2011. The unit started third-party billet purchases that are expected to bring the loss in finished long products output to minimum. According to preliminary estimates the equipment stoppage may result in 7% decline in the sales revenue of the plant on a standalone basis.

The second EAF located at the site was not affected by the incident and is fully charged to mitigate the billet output loss.

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