About NLMK Group

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2013 REPORTNLMK GROUP’S BUSINESSMODEL IS BASED ONA BALANCE IN OURPRODUCTION CHAIN,PRODUCT PORTFOLIO,AND SALES MARKETS.23NLMK is a vertically integrated groupwith a well-balanced value chain, providingcontrol over every stage of steel production,from the mining of raw materials to the saleof high-technology finished products toend users.At all stages of this process, we adhereto our commitment to corporate responsibility,seeking to ensure the well-being ofour staff, the local communities, and theenvironment.
ABOUT NLMK24NLMK GROUP’SVERTICALLYINTEGRATEDBUSINESS MODELNLMK has created a unique business model. A keyfactor is our ability to make the most of our strategicadvantages based on the geographical location ofour assets. Mining and steel production (the mostmaterial- and resource-intensive aspects of themetallurgical process) are concentrated in low-costregions, while finished products are manufacturedmuch closer to the Group’s client base. This allowsNLMK to minimize expenditure on production andlogistics while at the same time swiftly and flexiblyadapting to the changing requirements of our endusers and the situation in local sales markets.The key stages of our production chain are:1UPSTREAMOur Russian assets fully supply the Group’srequirements for iron ore concentrate, sinter ore,and coke, and the majority of our scrap and electricalpower needs. NLMK manages one of the mostefficient iron ore manufacturers in the world, whichis situated close to the Group’s main steel productionfacility and has reserves of over 6 billion tonnes.Novolipetsk and Altai-Koks have their own energygeneratingcapacities that run on by-product gasesand cover the companies’ energy needs. Altai-Kokseven sells excess energy to third-party consumers.A NEW PHASE OF DEVELOPMENT
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About NLMK Group

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