24 April 2014
NLMK and POSCO Engineering & Construction enter into cooperation agreement
NLMK Group (LSE: NLMK), Russia’s leading manufacturer of steel and HVA steel products, and South Korean POSCO Engineering & Construction have singed a General agreement of strategic cooperation to jointly implement investment projects to modernize blast furnace, steelmaking and rolling operation at the Lipetsk production site.
Projects implemented as part of the agreement are aimed at boosting the efficiency of technological processes, including hot-end operations; and controlling the quality of products at NLMK’s main production site; implementing best practices and advanced technologies, for instance, for pre-painted steel production; and mastering new types of HVA products.
The General agreement was signed by Sergei Filatov, NLMK Managing Director, and Deuk Hee Lee, Senior Vice-President of POSCO Engineering & Construction. Under the agreement, NLMK and the South Korean company are going to cooperate in the area of equipment and technology supplies, planning and implementation of investment projects, automation and project management.
NLMK Managing Director Sergei Filatov said:
“NLMK Group is continuing to successfully implement its strategic programme aimed at modernization and boosting the operational efficiency of production as part of Strategy 2017. Cooperation with a South Korean partner is the next step in strengthening NLMK’s leadership positions in the sector, and in ensuring the sustainable development of the Group, as well as the diversification of equipment and technology suppliers in the long term.”
POSCO Engineering & Construction and Lipetsky Gipromez (a design institute that is part of NLMK Group) agreed on a long-term partnership and are currently discussing the specific forms and programmes of cooperation in providing high quality design services on the Russian market.
About NLMK Group
NLMK Group is a vertically integrated steel company and Russia’s leading steel maker and manufacturer of rolled products with high added value. NLMK’s high-quality metal products are used in various industries, from construction and engineering to the manufacture of power-generating equipment and offshore wind turbines.
NLMK's production assets are located in Russia, Europe, and the United States. The Company’s liquid steel production capacity is over 17 million tonnes per year, of which about 16 million tonnes are produced in Russia. The Company generated US$ 10.9 billion in revenue, and EBITDA of US$ 1.5 billion in 2013.
NLMK’s ordinary shares are traded on the Moscow Stock Exchange (MICEX-RTS, ticker symbol: NLMK), and its global depositary shares are traded on the London Stock Exchange (ticker symbol: NLMK:LI).
About POSCO Engineering & Construction
POSCO Engineering & Construction is the engineering unit of the South Korean POSCO, one of the global leaders in terms of steelmaking efficiency. The company specializes in project design, equipment supplies, construction of large steelmaking facilities, and the preparation of metallurgic inputs (sintering, pellets). In recent years, POSCO Engineering & Construction has participated in large-scale steelmaking projects in Japan, China, India, Indonesia, Vietnam, Brazil, Iran, Uzbekistan, and Mexico.