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NLMK to Idle Two Blast Furnaces

11/17/2008 - Novolipetsk Steel announces plans to idle its Blast Furnaces No. 2 and 4, which represent a combined total capacity of approximately 2.5 million tonnes of pig iron.

NLMK (Novolipetsk Steel) announced plans to idle its Blast Furnaces No. 2 and 4, which represent a combined annual capacity of approximately 2.5 million tonnes of pig iron. The company planned to stop their operation on November 14 and 18, respectively.

“The global financial crisis is having a significant impact on the real economy. Primarily, this is reflected in lower consumption of energy, steel and other basic materials,” said Alexei Lapshin, NLMK’s CEO, commenting on the decision. “Our company is well prepared to respond to the worsening situation. The decision to halt two blast furnaces is a step in this direction.
 
“We are currently working on adjusting the company’s previously announced investment program, as well as on cost reduction plans and optimization of production processes,” continued Lapshin. “As one of the most efficient global steel producers, NLMK will continue to implement its Sustainable Growth Strategy as the market environment improves”.
 
The company plans to restart operation of the idled blast furnaces at the end of the first and second quarters of 2009. The temporary shut-down is expected to reduce the company’s total pig iron production volume by 325,000 tonnes in the fourth quarter of 2008, representing approximately 13.5 % of previously planned volumes.