NLMK boosts its colour-coating capacity

PRESS RELEASE

NLMK BOOSTS ITS COLOUR-COATING CAPACITY BY OVER 50%

NLMK has launched its 200,000 tpa Colour-Coating Line No.3 (CCL-3) for cold-rolled galvanized steel. The addition of the facility will have a significant effect on NLMK's total production capacity for this high value added product, which will grow by 53% to 580,000 tpa, strengthening its position as a supplier of high quality steel for the construction and white goods manufacturing sectors.

The key goal of this RUR3bn project, implemented as part of Stage II of NLMK's Technical Upgrade Program, is to increase the output of high-value-added grades.

CCL-3 has expanded the Company's capability to produce finished painted strip 0.3-0.8 mm thick and 700-1250 mm wide. There is a consistently high demand for these gauges in the domestic market, which are used in the manufacture of steel structures, including all types of metal tile, profiled sheet, sandwich panels, exterior and interior building cladding. The facility will produce unique thin colour-coated flat steel that are also in demand for the manufacture of air ducts, lighting fixtures and "white goods".

The new line meets the most progressive global energy efficiency & environmental protection requirements. As substrate for the colour-coated steel production galvanized steel produced at Continuous Hot Dip Galvanizing Line No.4 commissioned at the end of 2009 will be used.

For reference:

NLMK is a leading producer of colour-coated flats in Russia with over 21% of the domestic market. The Company produced over 332,000 tonnes of colour-coated steel in 2010, with 96% delivered to the Russian market. Colour-coated steel accounted for 3.6% of NLMK sales.