NLMK-Long Products, a division of Russian steelmaker Novolipetsk Steel (NLMK), has competed the reorganization of its production facility Nizhne-Serginsky Metallurgical and Metalware Plant (NSMMZ) by incorporating Berezovsky Electrometallurgical Plant within it.
The move is aimed at improving performance (at reducing managerial, administrative and other costs) and at the consolidation of the production chain within a single legal entity.
The production capacities of NSMMZ and the rolling shop of Berezovsky Electrometallurgical Plant, which is in the final stage of preparations for commissioning, are a part of a single production chain, which connects the electrical steelmaking and section rolling production of NLMK-Long Products' enterprises.
As a result of the reorganization, the production capacities of NLMK-Long Products for steel and long products output in Russia's Ural region will be focused within one enterprise, namely NSMMZ. The production capacities in question include electrical steelmaking production with up to 2.2 million mt per year capacity in Revda town, reinforcing bar production with up to one million mt per year capacity in Nizhniye Sergi town, and reinforcing bar in coils and wire rod production with up to one million mt annual capacity in Berezovsky (following the commissioning of the rolling mill).
NLMK-Long Products, established in December 2009 as a result of NLMK's acquisition of a controlling stake in Maxi-Group and its subsidiaries, includes Nizhne-Serginsky Metallurgical and Metalware Plant, Uralsky Plant of Precision Alloys, Berezovsky Electrometallurgical Plant, Kaluzhsky Electrometallurgical Plant, and companies in the Vtorchermet NLMK industrial association.
NLMK's 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 is currently under construction, and will also be a part of NLMK-Long Products division.