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NLMK Chairman Discusses Situation in Global Metals and Mining Sectors
04/17/2013 - Vladimir Lisin, NLMK Group’s chairman of the board of directors, recently shared his views on the current economic outlook and business development opportunities with investors from Russia, Europe and the U.S., discussing the situation in the metals and mining and transport sectors, and the strategic development of NLMK over the next few years.
Vladimir Lisin, NLMK Group’s chairman of the board of directors, met with investors at “The Russia Forum 2013”, an investment conference held in Moscow and organized by Sberbank. He took the opportunity to share his views on the current economic outlook and business development opportunities with investors from Russia, Europe and the U.S. He discussed the situation in the metals and mining and transport sector, and the strategic development of NLMK over the next few years.
Vladimir Lisin said, “Unfortunately, there is no quick resolution to the crisis in the global metals and mining sector. The weak growth in demand is coupled with a record overcapacity of up to 600 million tonnes but, at the same time, this crisis will have a “revitalizing” effect on the sector. Weak, inefficient companies will not survive, leaving the way clear for the more flexible and efficient players. This means that, along with the challenges, sustainable manufacturers will be presented with new opportunities to increase their operational efficiency, to fine-tune their use of the latest technologies, to expand their product mix, to penetrate more deeply into promising niche products and markets and to improve their quality of service. These crises have had a similar effect on steelmaking leaders in the past.”
“My forty years of experience show that NLMK’s strategy, with its key focus on stability and sustainability, is justified by the evolutionary logic of the industry. It is interesting to work in Russia, where today there are conditions for the further development of ferrous metallurgy. As a Russian company with a vast international presence, we possess a number of important competitive advantages related to resource self-sufficiency, employee skills and asset geography.”
“That is not to say that there are no challenges but these exist in the other countries in which our company operates. The most important thing, in my view, is to understand that these challenges are surmountable and that there is an ongoing improvement process that opens new market and operational opportunities. The country is growing, and our business is growing and improving with it. It is vital to sustain this growth and to improve its quality. We are willing to offer high quality competitive products and services to the Russian economy and to develop our presence in the export markets, thereby expanding our offering of high quality, competitive products.”
NLMK is a global steelmaker based in Russia. Its 2012, steel output totaled 14 million tonnes, with 94% produced in Russia, where the company’s share in production reached 20%. In 2013, the company expects a further increase in production to 15.5 million tonnes. Oleg Bagrin serves as the NLMK president.
In the Russian market, NLMK is a leading producer of cold-rolled, dynamo, transformer and pre-painted steel. It is also one of the largest producers of galvanized steel and rebar. NLMK’s European and U.S. assets produce rolled products. The company is a global leader in the slab and transformer steel markets and holds over 10% of the European thick plate market.
