NLMK Kaluga reaches 2 million tonne marker

The launch of NLMK Kaluga in July 2013 was the Event of the Year in Russian ferrous metallurgy. The plant is based on the mini-mill concept of locating EAF steelmaking and rolling operations in close proximity to sources of raw materials and consumers of finished goods.

NLMK Kaluga is a leader among EAF mills in terms of productivity and energy efficiency. The site’s technological process employs innovative solutions that ensure high resource usage efficiency; high quality output; and high standards of technical and environmental safety.

Alexander Burayev, NLMK Group Director for Long Products and Metalware, said: “Today represents an important milestone for NLMK Kaluga with the second millionth tonne of steel produced. Thanks to our responsible and highly qualified personnel, the Company has been able to meet targets in a short period of time; and is going strong. We continue to expand our product portfolio and the geography of sales. In 7 months of 2015, we have added a number of products to the mix which are in high demand in the construction sector, such as 63х5, 63х6, 100х7, 90х6 and 90х7 angles. The DIN 488 certificate obtained in May 2015 allows the use of NLMK Kaluga rebar in the EU construction industry.”

A high level of operational efficiency and a wide mix of in-demand products enables the Company to occupy approximately 50% of production in Central Russia, by largely pushing out exports through offering international quality products from a unique proximity to customers.

In the 6 months following launch, NLMK Kaluga ran at almost maximum capacity of rolling facilities, regardless of market conditions.

Company engineers were able to bring the performance of equipment to optimal levels and even further, through the use of innovative technological and management solutions the Company was able to achieve record productivity (conversion ratios were down 24% in 2015).

During the time it has operated, NLMK Kaluga has mastered 15 new types of long products, or over 20% of NLMK Long Products’ entire product portfolio. NLMK Kaluga’s current product mix includes #10, 12, 14, 16, 18, 20, 22 and 25 rebar and sections: 25х4, 75х6, 63х5, 63х6, 100х7, 90х6 and 90х7 angles. The Company plans to expand its offering to include 50х5 and 100х9 angles by the end of the year.

NLMK Kaluga is a next-generation EAF mill, part of NLMK Group’s Long Products Division. NLMK Kaluga was launched in July 2013. Investment in the construction of the plant totaled more than RUB 38 billion, of which around RUB 7.5 billion was spent on environmental protection measures.The plant is located in the Vorsino industrial park in Kaluga region, which has 33 companies among its residents. The plant is 73 km away from Moscow by road, and a little over 90 km by rail.

The plant is located in the centre of Russia’s largest long steel consuming region, the Central Federal District. The region accounts for approximately 30% of long steel consumption in Russia, and only 9% of its production. The region benefits from a surplus of scrap, NLMK Kaluga’s key feedstock material, which accounts for 2.7 million tonnes per year. Scrap is supplied by NLMK Group’s in-house scrap collecting network, Vtorchermet NLMK.

NLMK Kaluga’s steelmaking and long product capacities are 1.5 million tonnes and 0.9 million tonnes per annum, respectively. The facility is uniquely equipped in Russia to produce the widest range of premium-grade long products for use in construction.