NLMK and Siemens in Three-Year Cooperation Agreement for Supply of Steel Products
06/04/2013 - NLMK Group and Siemens AG have signed a three-year agreement on technical cooperation for the supply of NLMK-produced steel products to the Germany-based company.
The agreement was signed by representatives of the companies at an extended meeting of the Siemens Management Board held in Moscow on 4 June.
Oleg Bagrin, NLMK Group president, said: “This agreement takes the strategic partnership between NLMK Group and Siemens that commenced in 2010 to a new level. We consider this agreement to show recognition of the quality of our products and to confirm our long-term commitment to expand cooperation in the future.”
In line with this strategic document, the companies are to establish a common coordination board. Its goal will be to expand cooperation on the supply of NLMK-produced steel products and their application at Siemens’ plants. The board’s primary focus is to explore opportunities to expand the use of NLMK-produced steel at the Siemens plants in Germany, Austria, Slovakia, Mexico, Columbia, Brazil, India, UAE, and Russia.
As part of the new stage of cooperation, NLMK will be able to supply up to 18,000 tonnes of NGO (non-grain-oriented) steel, up to 15,000 tonnes of GO (grain-oriented) steel, and up to 30,000 tonnes of its thick plate per year. These steel products are planned for use in the manufacture of equipment for the electrical power industry, including electrical drives and transformers.
NLMK is a vertically integrated steelmaking company with production facilities in Russia, Europe, and the USA. Its operating units have a crude steel production capacity in excess of 15 million tonnes per year. The company generated US$ 12.2 billion in revenue and US$ 1.9 billion in EBITDA in 2012. NLMK’s ordinary shares are traded on the Moscow Stock Exchange (MICEX-RTS) and its global depositary shares on the London Stock Exchange. In 2012, NLMK sold 227,000 tonnes of GO steel and 275,000 tonnes of NGO steel. NLMK is one of the leading electrical steel suppliers in the world.
Siemens AG (Berlin and Munich) is a global powerhouse in electronics and electrical engineering. In FY 2012, which ended on September 30, revenue from continuing operations totaled € 78.3 billion, and income from core businesses amounted to € 5.2 billion. As at the end of September 2012, Siemens had approximately 370,000 employees. Siemens LLC is the head company of the Siemens corporation in the Russia and Central Asian regional cluster which, in addition to Russia, comprises Belarus, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan. Siemens employs around 3,200 people in Russia and Central Asia. In FY 2012 (as at 30 September), it had orders worth over € 2.4 billion in Russia, Belarus, and Central Asia, and a turnover of almost € 1.9 billion.
