NLMK enhances employee collaboration to create efficiencies

Novolipetsk, NLMK’s main production site in Lipetsk, announces the results of its annual innovation contest. Throughout the year, more than 1,600 employees from 55 of the company’s units took part in the contest. A total of 2,035 efficiency and 480 cost cutting proposals were accepted for implementation. Three inventions, two utility models, 1,996 efficiency and 412 cost cutting proposals were implemented in production areas. Three applications for proposed inventions and nine applications for utility models were sent to the Federal Institute of Industrial Property, seven patents were received from Rospatent (Russian Agency for Patents and Trademarks) for inventions and utility models, and five state registration certificates were issued for computer software.

The new developments and technical solutions were designed to improve equipment productivity and production processes, optimise energy consumption, and improve production quality and working conditions at the plant.

A technical creativity competition for young employees was also held as part of the innovation and efficiency contest. Over 300 company employees under the age of 30 took part in the competition. They were evaluated based on the number of proposals put forward, the most significant economic impact, as well as in the Best Young Innovator and Best Mentor for Young Innovators categories.

As a result of implementing the efficiency and cost cutting proposals at Novolipetsk, savings of around RUB140 million were achieved.

About NLMK:

NLMK is an international vertically-integrated steelmaking company with production facilities located in Russia, Europe and the US. The liquid steel capacity of its operating units exceeds 15 mtpy. The Company generated $11.7 billion of revenues and a 19.5% EBITDA margin for the full year 2011.

The Company's shares and GDSs are traded on the MICEX-RTS and LSE, respectively.