The Russian steel producer Novolipetsk Steel (NLMK) is expecting to see increased domestic demand for rolled steel products used in construction, due to the current revival in the construction sector, and thus is actively strengthening its position in the Russian domestic market.
According to forecasts made by NLMK at the ongoing international conference in Moscow entitled ‘Rebar Steels Market: Trends in Production and Consumption in 2010', the volume of construction in Russia will increase by three percent in 2010, while in 2011 it will grow by five percent, both compared to 2009. Meanwhile, in the current year, the construction of residential buildings will increase by two percent (in 2011 - by three percent), and the construction of non-residential buildings will rise by six percent (in 2011 by 11 percent), all compared to 2009. Construction in Russia is expected to reach the 2008 pre-crisis levels in 2012.
In order to strengthen its position in the Russian domestic market for steel products used in construction, in October 2009 NLMK commissioned its fourth hot dip galvanizing line, with an annual capacity of 300,000 mt, while in the third quarter of this year it plans to commission a new color‐coating line with an annual capacity of 200,000 mt. In addition, one of NLMK's major projects for the development of its long products division is the construction of the electrometallurgical plant in the Kaluga region with an annual capacity of up to 1.55 million mt of crude steel and 1.5 million mt of long products. The completion of construction and commissioning of this project are scheduled for the beginning of 2012.