NLMK DanSteel confirms compliance of management systems with best global practices

NLMK DanSteel A/S, part of NLMK Europe Plate and Denmark’s only manufacturer of steel plates, has confirmed the compliance of its Quality, Energy, Environmental; and Occupational Health and Safety management systems with international standards and best global practices.

The renewal audit of North Europe’s leading supplier of plates for wind energy generation was carried out by DNV GL - Business Assurance Denmark. The audit confirmed that NLMK DanSteel’s organizational structure, procedures, business processes and resource management system ensure efficient operational management.

As a result of the audit, NLMK Group’s Danish company received 3-year certificates of compliance with ISO 9001 (Quality Management), ISO 50001 (Energy Management), ISO 14001 (Environmental Management) and OHSAS 18001 (Health & Safety Management) standards, allowing the plant to maintain its competitive edge.

In 2015, NLMK DanSteel increased plate sales by 9% to 435,000 tonnes. This result was driven by a comprehensive approach to enhancing business process efficiency.

Igor Sarkits, CEO of NLMK Europe Plate, said:

“NLMK DanSteel is committed to the principles of safe and efficient production of high quality steel products. DanSteel continuously improves the quality of its services, which is validated by its leading market position and increasing demand from key consumers in shipbuilding, power plant engineering and construction. Continual improvement of the quality of steel plates and expansion of the product mix allow the plant to compete with local suppliers and with imports, capturing new markets.”

About NLMK DanSteel

NLMK DanSteel is part of NLMK Europe Plate Division, owned by NLMK Group, an international steel company with production assets in Russia, the USA, and the EU. It has a total capacity of over 0.5 million tonnes of plates per year.

NLMK DanSteel produces a wide range of high quality thick plates for wind turbines, drilling platforms, ships, ‘yellow goods’ manufacturers and infrastructures, primarily for the Northern European market. Slabs for DanSteel’s thick plate production originate from NLMK Group’s main site in Lipetsk, ensuring a stable supply of ultra-high quality steel. This unique business model allows DanSteel to expand its presence in the large European thick plate market, offering its clients a wide product mix and just-in-time delivery, including express delivery.

In December 2012, NLMK DanSteel completed the revamp of its rolling mill and started production at its new 4.2 m heavy plate stand, adding new products to the company’s portfolio. The EUR 120 million project is part of the company’s strategy to leverage its strong position in the plates market.

NLMK DanSteel in The PISA Project R&D programme

NLMK DanSteel joined The PISA Project, the European research and development programme aimed at improving the construction of offshore wind turbines, in May 2014. The plant supplied 200 tonnes of plates with special dimensions made from high-strength steel for the construction of experimental foundations for offshore wind turbines. It is the only supplier of thick plates of special dimensions made from high-strength steel for the programme.

The aim of the project is to improve the construction of foundations for offshore wind turbines in order to reduce cost, and consequently, to raise the investment appeal of wind power. Other participants from the Danish side are DONG Energy and Bladt Industries A/S, the manufacturer of foundations for turbines.

Wind energy in Denmark

Currently, around 28% of electric power in Denmark is generated by wind turbines. The Danish Government is planning to bring the share of renewable generation in the country’s energy balance to 50% by 2020; and to 100% by 2050.

About NLMK Group

NLMK Group is the largest steelmaker in Russia and one of the most efficient in the world. NLMK’s metal products are used in various industries, from construction and engineering to the manufacture of power-generating equipment and offshore wind turbines.

NLMK's production assets are located in Russia, Europe, and the United States. The Company’s liquid steel production capacity is over 17 million tonnes per year, of which about 16 million tonnes are produced in Russia.

NLMK has the most competitive cash cost among global manufacturers; and one of the highest profitability levels in the sector. The company generated $6.37 billion in revenue; $1.63 billion in EBITDA; and a net profit of $891 million in 9M 2015. Net Debt/EBITDA is 0.5.

NLMK’s ordinary shares are traded on the Moscow Stock Exchange (ticker symbol: NLMK), and its global depositary shares are traded on the London Stock Exchange (ticker symbol: NLMK:LI). The company has a BBB- credit rating.