NLMK Products (Raw Steel)

The Company’s vertically integrated business model with a balanced value chain ensures control over all stages of production and maximizes geographical advantages.

100% of NLMK’s mining assets are located in Russia, as well as 94% of its steelmaking capacity. Low steel production costs are ensured due to high self-sufficiency in iron ore, coke, scrap and energy; steelmaking assets located close to raw material sources; and efficient manufacturing technologies. 60% of NLMK’s rolling assets are also located in Russia. NLMK produces a wide range of flat products, including hot-rolled, cold-rolled, galvanized, pre-painted and electrical steel, as well as a variety of long products and metalware. NLMK is the largest producer of high value added steel products in Russia. NLMK’s key customers in Russia are construction and infrastructure companies.

23% and 19% of the Company’s rolling assets are located in Europe and the US, respectively. The efficiency of NLMK’s foreign rolling operation is ensured by the use of slabs supplied by NLMK’s main production site in Russia and the proximity of an extensive customer base that allow flexibility in addressing the needs of customers. Hot-rolled, cold-rolled, galvanized steel and thick plates produced in Europe and the US are mainly sold to customers in the automotive industry; manufacturers of pipes; wind energy equipment manufacturers; heavy engineering companies and manufacturers of offshore drilling constructions.