NLMK La Louvière, one of Belgium's leading flat steel producers and an NLMK Group company, is investing EUR 150 million in a modernization project for a hot rolling mill that will allow the production of thinner and higher-strength steel. As a result, NLMK La Louvière consumers will be able to turn this product into productive and environmentally friendly machines and facilities.
Investments in the modernization of the mill are part of NLMK Group's 2022 Strategy. Following the modernization results, NLMK La Louvière will increase its annual production of rolled products from the current 1.7 million to 2.2 million tons by 2022, as well as its market share for niche hot rolled steel grades in the EU countries.
The modernization includes the introduction of the latest automation systems, installation of three new and modernization of three finishing stands, replacement of drives and motors of the stands, a new discharge roller conveyor and cooling system, an upgraded water treatment system.
The project will allow the site to increase the production of rolled products with a thickness of up to 1.2 mm , to expand the range of high-strength grades with a tensile strength above 1000 MPa, as well as offer customers the best surface quality and accuracy in meeting target parameters on the market.
The first phase of the project, which will be completed in 2021, will start in early 2020. Primetals Technologies, a leading provider of engineering solutions in the metallurgical market, was selected as the contractor. The company completed basic engineering and started manufacturing equipment.
“This project will help NLMK Group achieve one of the key goals of Strategy 2022: increase sales of high value-added products by 1.7 million tonnes. Growth will be achieved by expanding the range and improving product quality, as well as meeting the needs of customers looking for lighter, stronger steel. This breakthrough project, which represents the largest investment for NLMK La Louvière and its clients in recent decades, will form the foundation for the further development of the company, ”said Ben de Vos, Chairman of the Board of NLMK International.
About NLMK La Louvière
Based in Belgium, NLMK La Louvière specializes in the production of hot and cold rolled products for the automotive, construction and mechanical engineering sectors. Production capacity of the enterprise: up to 2 million tons of hot-rolled steel, up to 1.5 million tons of hot-rolled pickled steel and up to 0.6 million tons of cold-rolled steel per year.
Information about NLMK Belgium Holdings
NLMK Belgium Holdings (NBH) - a joint venture between NLMK Group (49%) and Belgian investment fund SOGEPA (49%); another 2% of shares are treasury.
NBH unites European flat products manufacturers NLMK la Louviere and NLMK Strasbourg, NLMK Manage service center, as well as plate manufacturers NLMK Clabecq (Belgium) and NLMK Verona (Italy).
AND Information about NLMK Group
NLMK Group is a vertically integrated metallurgical company, the largest in Russia and one of the world's most efficient steel producers.
NLMK Group's metal products are used in various industries, from construction and mechanical engineering to power equipment and offshore wind turbines.
NLMK's production assets are located in Russia, Europe and the United States. The company's steel production capacity exceeds 17 million tonnes per year.
NLMK demonstrates high cost competitiveness among global manufacturers, the company's profitability is one of the highest in the industry. The company's revenue in 2018 was $ 12 billion, EBITDA was $ 3.6 billion. The Net Debt /EBITDA ratio was 0.25x. The company has investment grade credit ratings from S&P, Moody's, Fitch and Expert RA.
NLMK's common shares, which have a free-float of 19%, are traded on the Moscow Stock Exchange (ticker “NLMK”), global depository shares - on the London Stock Exchange (ticker "NLMK: LI"). The share capital of the Company is divided into 5,993,227,240 ordinary shares with a par value of 1 Russian ruble.
For more information on NLMK's share capital, please follow the link.
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Information about SOGEPA
SOGEPA Investment Fund was founded in 1984 to support the economic development of the Wallonia region. SOGEPA contributes to the creation of sustainable businesses by investing in industrial projects and assets. The fund operates on the principles of efficient private investment, playing an active role in the strategic management of companies at the board level.
Together with private investors, SOGEPA is a reliable partner for companies located in the Wallonia region and for other industrial enterprises.
