Vtorchermet NLMK growth picks up steam

In 2011 Vtorchermet NLMK set up 18 new scrap metal processing sites in various regions across Russia. The Company purchased 22 handling machines, 88 vehicles for process needs; it also assembled and commissioned 3 shearing presses.

In 2011 Vtorchermet NLMK invested over RUR330 million into its Technical Upgrade Programme. The largest investment project is a new scrap processing site in Podolsk (Moscow region) that is important for NLMK’s Kaluga EAF Mini Mill (part of NLMK Long Products) currently under construction. Last year the Company invested over RUR180 million into the project. A shredder will be launched at the Podolsk site at the end of the year.

Last year Vtorchermet NLMK shipped 3.3 million tonnes of ferrous scrap, up 4% year-on-year. In-house scrap collection increased by 18% and amounted to 2.7 million tonnes. NLMK Group’s self-sufficiency in scrap grew from 71% to 81%. By 2016 it should reach the level of 86%, even considering the 40% increase in steelmaking capacities in 2011-2013, while larger in-house scrap collection volumes should bring Vtorchermet NLMK’s share of the Russian scrap market to 25%.

For reference:
Vtorchermet NLMK is a scrap processing unit of NLMK Long Products. Vtorchermet NLMK (former Uralvtorchermet) is one of the largest and well-equipped scrap collectors in Russia with production sites in 37 regions across the country. Vtorchermet NLMK supplies ferrous scrap to NLMK Long Products and NLMK steelmaking plants. It can process up to 3 million tonnes of ferrous scrap per year.
NLMK Long Products, one of the largest long steel and metalware manufacturers in the Russian market, is NLMK’s subsidiary, consolidating NLMK Group’s Long Products Division since December 2009. NLMK Long Products companies make up an integrated production structure covering the entire cycle from the collection and processing of ferrous scrap to manufacturing downstream steel products – rebar, wire rod, and metalware. NLMK Long Products key companies are: NSMMZ in the Sverdlovsk region (EAF and long products) and UZPS (metalware). The Kaluga EAF Mini Mill is currently under construction. The Company’s raw material division is represented by Vtorchermet NLMK, one of Russia’s leading scrap collecting businesses, present in various regions around the country.