The Russian steelmaker Novolipetsk Steel (NLMK) has announced the establishment of a new subsidiary, namely, LLC NLMK-Long Products, in order to enhance the management of its long products business, allowing it to cut down production costs along the value chain - from ferrous scrap collection and processing to the manufacture of high value-added products.
Accordingly, NLMK's new subsidiary will function as the managing company for its steel companies which specialize in the production of long products and metal-ware, including 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.
LLC NLMK-Long Products' functions will include the operation of all business processes, financial and commodity flows of long products, and will also take on the functions of NLMK's NSMMZ Trading House, which used to trade in long products and metal-ware, in order to optimize the distribution system for finished products.
The new division was established as a result of NLMK's acquisition of a controlling stake in Maxi-Group and its subsidiaries.
NLMK's facilities incorporated under LLC NLMK-Long Products produce commercial billet, wire rod, rebar, wire, nails, metal mesh and fixing hardware, and currently have an annual capacity of 2.2 million mt of crude steel, two million mt of long products, and 560,000 mt of metal-ware, following the commissioning of Maxi-Group's rolling mill in Berezovsky. 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.