22 May 2014

NLMK Group announces Environmental Programme 2020

NLMK Group is announcing the launch of the third stage of its environmental programme, covering the period up to 2020 (Environmental Programme 2020). This programme is part of the Group’s development strategy and investment programme. It is aimed at further minimizing our environmental footprint and achieving the best possible environmental standards in global steel production.

Investment in environmental initiatives and projects at NLMK Group companies will total RUB 10.6 billion. Most of the funds will be invested at NLMK’s Lipetsk production site.

Environmental Programme 2020 will ensure:
  • compliance with all environmental standards by all enterprises of the Group;
  • reduction in specific emissions at NLMK’s Russian sites from 22.6 to 19.4 kg per tonne of steel to comply with the level of the best available technologies in the global steel industry;
  • zero waste water discharge at all Group sites;
  • increase in waste recycling from 5% to 25%;
  • complete elimination of waste accumulated over previous years (in particular, the slag heap formed at the Lipetsk site over the last 80 years, and the sludge dump at NSMMZ (Revda) that has been there for over 40 years).
Yuri Larin, Vice President, Technology Development & Operational Efficiency, said:
“NLMK Group has been tremendously successful in implementing the previous stages of our Environmental Programme, through both the introduction of advanced technological solutions and various other environmental initiatives. It is crucial to point out that the significant reduction in our environmental footprint was achieved in the context of a doubling of production volumes, making the results twice as impressive.

“The many years’ successful experience of our environmental experts, and the research they have conducted, have formed the basis for Stage 3 of our Environmental Programme, developed hand in glove with the Group’s production plan.

“Our goal is to become leaders in environmental efficiency, not only in Russia, but globally.”

Key projects under NLMK’s Environmental Programme 2020 (Stage 3) include:
  • construction and reconstruction of dust collecting systems
  • modernisation of the cooling complex for blast furnace slag at NLMK’s main production site in Lipetsk;
  • reconstruction and upgrading of dedusting systems at Stoilensky and Altai-Koks;
  • construction and reconstruction of water and waste water treatment facilities, including for treatment of oil-contaminated water from rolling operations at NSMMZ and NLMK Europe (La Louvière);
  • rehabilitation of the slag heap at Novolipetsk and the industrial waste disposal site at VIZ-Steel; elimination of the sludge dump at NSMMZ;
  • and the use of mill tailings for the construction of enclosures for tailing dump units at Stoilensky.
Results of NLMK’s Environmental Programme 2007–2012 (Stage 2)

During Stage 2 of its Environmental Programme (from 2007 to 2012), the Group invested over RUB 21 billion in environmental projects. In total over the period, NLMK Group invested RUB 258 billion in upgrades and new capacities, including RUB 7.5 billion invested in environmentally-friendly technologies at NLMK’s new-generation plant, NLMK Kaluga, launched in July 2013.

From 2007 to 2012, steel output at NLMK Group’s Russian sites increased by 52% to 14.2 million tonnes, while specific air emissions decreased by 40% (from 37.5 to 22.6 kg per tonne of steel), and waste water discharge was reduced by 54 times (from 1.08 to 0.02 kg/t). Waste water discharge at the Lipetsk site was completely eliminated in mid-2009).

About NLMK Group

NLMK Group is a vertically integrated steelmaking company, and Russia’s leading manufacturer of steel and HVA rolled products. NLMK Group’s high-quality steel products are used in a variety of industries, from construction and machine-building to the manufacture of power generation equipment and offshore windmills.

NLMK’s production facilities are located in Russia, Europe and the USA. The Company’s crude steel capacity is over 17 m tpa, of which approximately 16 m t are located in Russia. The Company generated $10.9 billion in revenue and $1.5 billion in EBITDA in 2013.

NLMK’s ordinary shares are traded on the Moscow Stock Exchange (ticker “NLMK”) and its global depositary shares on the London Stock Exchange (ticker “NLMK:LI”).


Maria Simonova

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