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NLMK to Acquire Kaluga Electric Steelmaking Plant
05/18/2010 - NLMK recently purchased a 100% stake in CJSC Kaluga Electric Steelmaking Plant from LLC Metallurgical Holding to advance the development strategy of its Long Products Division.
NLMK recently purchased a 100% stake in CJSC Kaluga Electric Steelmaking Plant (KNPEMZ) from LLC Metallurgical Holding (a Maxi-Group subsidiary) for a total consideration of RUR 604.5 million.
NLMK notes that the main objective behind the acquisition is to advance the development strategy of its Long Products Division. The acquisition by Novolipetsk Steel, a company with high credit ratings, is expected to create additional ways to attract investment into the project on favorable terms.
The construction project has been financed by NLMK since 2008. The company’s investment into the project has already reached RUR 7.3 billion. The total planned investment is around RUR 37 billion including VAT.
This project will create a new-generation “mini-mill” steel plant based on ferrous scrap recycling. State-of-the-art environmental protection technologies are expected to help achieve a reduction in specific emissions per tonne of steel of over six-fold as compared to the average specific emissions volume at Russian integrated steel plants, according to NLMK.
The main Kaluga steel plant facilities—the EAF Shop and Rolling Shop—are currently under construction. NLMK plans to have finished the construction of the main shops’ building structures and to start installing the equipment by the end of the year.
The construction project has been financed by NLMK since 2008. The company’s investment into the project has already reached RUR 7.3 billion. The total planned investment is around RUR 37 billion including VAT.
This project will create a new-generation “mini-mill” steel plant based on ferrous scrap recycling. State-of-the-art environmental protection technologies are expected to help achieve a reduction in specific emissions per tonne of steel of over six-fold as compared to the average specific emissions volume at Russian integrated steel plants, according to NLMK.
The main Kaluga steel plant facilities—the EAF Shop and Rolling Shop—are currently under construction. NLMK plans to have finished the construction of the main shops’ building structures and to start installing the equipment by the end of the year.
Plant startup is scheduled phase-by-phase: during the first and second stages in Q1 and Q2 2012, EAF and rolling complexes will be put in operation, which will have an output of up to 1 million tonnes per annum of liquid steel, as well as long products and profiles. NLMK plans to begin the commissioning of the facilities under the 1st and 2nd stages in Q4 2011.
The decision on further development of production facilities (third stage) will be considered in 2012. It will involve product mix expansion and total output increase up to 1.55 million tonnes per annum of rolled products.
CJSC KNPEMZ, located in the Vorsino Industrial Park in the Kaluga region, is included in the list of top-priority investment projects under the Russian Steel Industry Development Strategy to 2020. The plant will supply high-quality long products to the construction market of Central Russia.
