The Russian steelmaker Novolipetsk Steel (NLMK) has announced that in 2010 it plans to increase its investments by about 73 percent year on year to $1.9 billion, in line with the recovery in world steel demand. In 2009, NLMK's overall сapital expenditure totaled $1.1 billion - down 42 percent year on year, with maintenance accounting for a 20 percent share.
Accordingly, in 2010 NLMK will continue the implementation of its technical upgrade program, which aims to increase crude and rolled steel output, raise product quality, improve production efficiency and increase the output of high value‐added products.
In particular, at its main production site in Lipetsk, NLMK will accelerate the construction of the new 3.4 million mt annual capacity blast furnace (BF) No. 7, which remains its largest and the most capital‐intensive project. Currently, over 60 percent of the project is complete and a major part of the equipment will be installed in 2010. The launch of the furnace is scheduled for the middle of 2011.
In addition, in 2010 NLMK will continue the construction of the converter No. 1, which, along with the launch of BF No. 7, will allow it to increase its annual steelmaking capacity to 12.4 million mt. The launch of the converter is expected to take place in 2011.
Targeting further improvement in the quality of steel and expansion of the product mix through the secondary steelmaking process at its Lipetsk site, NLMK will also go forward with the construction of a new ladle furnace and a vacuum degasser.
In mid-2010, NLMK plans to commission a new color‐coating line with an annual capacity of 200,000 mt. In 2009, the company hot-tested its new hot dip galvanizing line No. 4 with a total annual capacity of 300,000 mt.
On the other hand, NLMK will also continue to develop its long products division. In 2010, production equipment will be installed at its Kaluga EAF-based mini‐mill. The completion of construction and the first launch are expected at the beginning of 2012. Total annual capacity will be about 1.5 million mt of steel.
In 2009, at its Berezovsky plant NLMK tested new a rolling mill which is currently in the commissioning stage. The total annual capacity of the facility is about one million mt of wire rod and rebar.
Meanwhile, in its mining segment, NLMK will continue expanding its Stoilensky mine in order to increase mining capacity by 25 percent to secure 100 percent self‐sufficiency in iron ore at the Lipetsk production site after the launch of the BF No. 7.