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6 February 2017

NLMK USA Re-starts Galvanize Line 2 at Sharon Coating

NLMK USA, NLMK Group’s US-based Division, has re-started its #2 hot-dip galvanizing line in February 2017. The line, which is located at Sharon Coating in Pennsylvania, has a capacity of approximately 226,000 metric tonnes per year. With the re-launch of the second line, Sharon Coating’s effective capacity increased by 43% driven by growing demand in the USA.

One hot-dip galvanizing line, with a capacity of 521,000 metric tonnes per year, is currently running at Sharon Coating. Line #2 was idled in 2012, due to weak demand for galvanized steel on the US market.

Bob Miller, NLMK USA CEO, said:

“We are seeing demand increase in the USA market, driven by the pick-up in activity in the automotive and construction sectors, and trade measures introduced to protect the US market from unfairly traded imports. Sharon Coating traditionally supplies galvanized steel to manufacturers of engineered steel buildings, general manufacturing, construction products, solar energy, automotive, and service centers. Our customers took very positively to our plans to expand our offering of high value added products that are in such high demand in the market.”

Sharon Coating produces hot-dip galvanized steel from cold-rolled steel made at NLMK Pennsylvania, located just 2 miles to the South, from slabs supplied by Novolipetsk. The two NLMK USA facilities operate together, forming a single complex that manufactures value added steel products.

In 2016, NLMK USA increased its galvanized steel sales by 10% to 359,000 metric tonnes, posting 19% year-on-year growth in Q4 alone (see Q4 2016 and 12M 2016 NLMK Group Trading update).