Russian steel producer Novolipetsk plans to cut production

Russian steel producer Novolipetsk plans to cut production

One of the largest Russian steel producers of cold rolled and hot rolled flat products, Novolipetsk Metallurgical Plant (NLMK) is planning to cut its steel and rolled production by 10% in 2003. The company director pointed out to the fact that demand from the Chinese market has now started to weaken and the U.S. market is closed for Russian steel imports. In 2002, the mill produced 8 million tonnes of rolled stock and 8.5 million tonnes of steel with the net profit reaching Rubles 15 billion (USD 482 million) which rose sharply from Rubles 6 billion recorded in 2001. As a natural consequence of the decision to reduce the production level by 10 percent in 2003, the net profit for this year is expected drop comparatively.