22 June 2007 NLMK DanSteel

Novolipetsk Steel (NLMK) transfers DanSteel A/S ownership to its subsidiary, NLMK International BV

Novolipetsk Steel, NLMK (LSE: NLMK), a leading Russian steel producer, today announced the transfer of ownership of its 100% interest in DanSteel A/S to NLMK International BV. NLMK International BV is a 100% owned NLMK subsidiary registered in the Netherlands.

NLMK International BV was established in 2006 within the framework of the “Sustainable growth strategy 2007 – 2011”. A key element of the strategy is the acquisition of high quality rolling assets in core markets. NLMK International BV will play the role of the investment vehicle for future acquisitions of foreign assets by NLMK Group. The ownership of the 50% interest in NLMK – Duferco Group JV will also be transferred to NLMK International BV in the near future.

The establishment of NLMK International BV advances several important objectives of the company’s M&A policy. In particular, it enables to NLMK to optimize the ownership and management structure of foreign assets. An additional factor in favor of establishing NLMK International BV is the necessity of consolidating financial flows for future international acquisitions.

About Novolipetsk Steel (NLMK)

Novolipetsk Steel (NLMK) is one of the world’s most profitable steel companies, with EBITDA margin over 40%, and one of the three largest flat steel producers in Russia, with over 9 million tonnes of crude steel capacity. NLMK’s production facilities are among the most technologically advanced in Russia, producing flat steel products in a variety of grades and sizes.
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About DanSteel A/S

DanSteel A/S was established in 2002 in continuation of Danish Steel Works Ltd., which was founded in 1940. DanSteel produces around half a million tonnes of hot rolled steel heavy plates.

DanSteel A/S' production facilities consist of a rolling mill and services in the form of shot blasting and priming, marking, tests, burn and plasma cutting. The product range includes structural steel, shipbuilding steel and steel for boilers and pressure vessels. The company has its own harbour from where approximately 70% of its production is loaded on coasters and transported directly to the customers. In January 2006 NLMK acquired a 100% stake of DanSteel A/S.

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