NLMK Group to grow HDG output by 11% in 2016

The project will boost the line HDG-1 productivity by 30% to 500,000 tonnes per year; and increase Lipetsk site value added manufacturing capacity to produce HDG steel for the construction, automotive, and ‘white goods’ sectors to 1.25 million tonnes.
As a result, NLMK will solidify its position in the HVA rolled steel market, where demand exceeds the capacity of Russian manufacturers and is covered by imports, including from far-abroad countries.

NLMK has created a reserve stock of galvanized steel for key consumers in machine building, automotive and ‘white goods’ sectors in order to offset the impact of the reconstruction on the market. The decrease in coated steel output will also be offset by higher CRC supplies.

HDG-1 reconstruction will also result in:

a 25% reduction in HDG-1 natural gas consumption though using modern burners and furnace control systems

a 15% reduction in HDG-1 electric energy consumption through optimizing equipment configuration

a 30% reduction in HDG-1 air emissions through optimizing the natural gas afterburning system (the gas being used to fuel the furnace)

Investment in the project will total approximately 2 billion rubles; with a payback period of 2 years.