NLMK.L Regulatory News (NLMK)

30 Mar 2006 13:00

OJSC Novolipetsk Steel30 March 2006 OJSC Novolipetsk Steel 30 March 2006 OJSC NOVOLIPETSK STEEL (NLMK) ADOPTS INTERNAL RESTRUCTURING PLAN OJSC Novolipetsk Steel (LSE: NLMK) today announced that it has embarked on aninternal restructuring plan aimed at: • optimizing the asset portfolio of the Company • strengthening vertical integration of the Company; and • building up an efficient management structure. The restructuing plan approved by the Board puts forward the following keysteps: - to optimize the composition of the Company through further consolidation of NLMK's core assets: steel, mining and supporting businesses - to continue the strategy of divesting NLMK's stakes in non-core assets, including financial and auxiliary transportation assets; - to develop a divisional management structure organized along the key segments of the Company's value chain: technology division, mining division, steel division and sales division; - to set up a Corporate Centre consolidating the following functions: strategic planning, finance, external relations, HR, legal services, IT, environmental compliance. NLMK's asset portfolio management strategy has a clear focus on maximizing thevalue of existing assets and getting the maximum return from the divestment ofnon-core businesses. The most recent M&A activities of the Company have includeddivestment of the minority interest in Lebedinsky GOK, acquisition of DanSteel A/S, consolidation of an iron ore producer KMA-Ruda, purchase of majorityinterest in coke producer Altai-Koks and 100% interest in Prokopievskugol CoalCompany. The management structure reorganization and creation of functional divisions isa response to the growing size and importance of the R&D, mining and sales unitsof the Company. These divisions significantly enhance the performance of theflagship steel division, expanding the Company's value chain. The Corporate Centre is being set up to increase the efficiency of the Company'sbusiness processes by centralizing key management functions. This will result inthe increased quality and transparency of decision-making and greater managementaccountability to shareholders. Commenting on today's announcement, Dr. Vladimir Lisin, Chairman and controllingshareholder of NLMK, said: "Our business is successfully growing as a result of NLMK's solid strategy andstrong commitment to development as a leading global steel producer. The Boardbelieves that focusing NLMK on its core businesses and improving its managementstructure will further boost growth and shareholder value." For further information: NLMKAnton Bazulev +7 495 915 1575 Financial DynamicsJon Simmons +44 207 831 3113 This information is provided by RNS The company news service from the London Stock Exchange