About NLMK Group

ABOUT NLMK2MIDSTREAMThis is the process of converting raw materials intothe components used to charge the furnaces, aswell as the production of crude steel and cast slabs.PROCESSThe Group’s steelmaking operations are wellbalanced, using different methods: the basic oxygenfurnace (BOF) route, representing over 80% (atthe low-cost Novolipetsk site), is complemented byelectric arc furnace (EAF) production, representingnearly 20% (at NLMK Russia Long, NLMK EuropePlate, and NLMK USA).ADVANTAGESThis balanced business model allows us to quicklyand flexibly adjust our production according tothe market situation. The steel produced by ourGroup in Russia is one of the lowest-cost productsin the world. This is facilitated by proximity to thesources of our raw materials, the relatively lowNLMK’s steelmaking capacities arelocated in close proximity to our rawmaterial assets.cost of energy and labour, and the highly efficienttechnology we use.Over the last few years, NLMK has been activelydeveloping its secondary metallurgy capacity.This has allowed us to expand our product mixto include high-quality grades of steel that are indemand on the market.Recently, this competitive advantage has allowedthe Group to further expand its low-cost productionbase in Russia: in 2011, we commissioned anew blast furnace and a basic oxygen furnace, thusincreasing our steelmaking capacity by over a third.In 2013, we commissioned a next-generation EAFplant, NLMK Kaluga, with a capacity of approximately1.5 million tonnes of steel.34817+80 / 20 %100 %US$ / TSLAB PRODUCTION COST ATTHE MAIN PRODUCTION SITEM T / YSTEEL PRODUCTIONCAPACITYBOF/EAF PRODUCTION RATIOOF STEEL UNDERGOESSECONDARY METALLURGYTREATMENTA NEW PHASE OF DEVELOPMENT