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6 February 2012

NLMK USA sets new records in production and quality

NLMK’s plant at NLMK Indiana has ended 2011 setting 10 new production records. In the Melt Shop, a new annual tonnage record of 672,756 cast tons* produced with an average tap to tap time of 71.31 minute was achieved, +1.6% compared to 2010’s tonnage record. Capacities were running at over 90%. In the Hot Strip Mill (HSM), the monthly record for throughput was broken 4 times in 2011. In November 2011 the throughput rate was 176.7 ton/hr.

HSM total tons produces grew to a record 644,300 tons, +2% versus the best of 630,420 tons Set in 2010. In 2011, the HSM also processed 11% High Carbon grades which is also a new high level of production of these grades.

In 2012 the Company maintained high performance rates, setting a new monthly tonnage record in January 2012 of 73,050 cast tons, +4% versus the previous best of 69,988 tons set in May 2011.

Several production records were set by other NLMK USA companies. For instance, in 2011 the Specialty Strip area at NLMK Pennsylvania posted a volume record for the second straight year with the 2011 annual tonnage coming in at 88,042 tons, +9% compared to 2010’s record. It also set a tons per turn record by averaging 168 tons per turn beating the previous record set in 2009 of 159 tons per turn. On the quality front, the Company’s Tandem Mill set a new all-time best for diverted tons of 0.78%, beating a long standing record from 2003 by 0.01%.

Productivity records were set on two galvanizing lines at Sharon Coating in 2011. Line 1 set a new run rate record posting an average tons per ton of 128.2 tons (the previous record of 127.2 tons per turn was set in 2008); Line 3 also had a record year with a rate of 507.4 tons per turn which was well over the old best set in 2008 of 491.2 tons per turn.

*- American short tons

For reference:

Located in Portage, Indiana, USA, NLMK Indiana is a steel mini-mill specializing in the production and sales of HR coils to service centers and pipe and tube manufacturers. The Company operates a 0.7 mtpy Electric Arc Furnace Melt Shop and a 0.9 mtpy Hot Strip Mill. The headcount is about 350 employees. NLMK Indiana’s production facilities are strategically located in the Midwest, close to its main consumers that accounting for almost 80% of NLMK Indiana’s supplies. Up to 40% of US scrap, the Company main raw material, is collected in the region. Close proximity to suppliers of main raw materials and clients allows the Company to optimize its transportation costs.