Novolipetsk Steel, or NLMK, is one of the four largest

steel Steel is an alloy of iron and carbon that demonstrates improved mechanical properties compared to the pure form of iron. Due to steel's high Young's modulus, elastic modulus, Yield (engineering), yield strength, Fracture, fracture strength a ...

companies in

Russia Russia, or the Russian Federation, is a country spanning Eastern Europe and North Asia. It is the list of countries and dependencies by area, largest country in the world, and extends across Time in Russia, eleven time zones, sharing Borders ...

. NLMK's share of domestic crude steel production is about 21%. It primarily produces flat steel products, semi-finished steel products and electrical steels. NLMK also produces specialty coated steels, plus high-ductility and micro-alloyed steels. It is the 21st-largest steel maker in the world. The larger NLMK group owns a number of other steel and mining industries, mostly in Russia.

History

Historically, the

Lipetsk Lipetsk (, ), also Romanization of Russian, romanized as Lipeck, is a types of inhabited localities in Russia, city and the administrative center of Lipetsk Oblast, Russia, located on the banks of the Voronezh (river), Voronezh River in the Do ...

area in central Russia has had substantial

iron ore Iron ores are rocks and minerals from which metallic iron can be economically extracted. The ores are usually rich in iron oxides and vary in color from dark grey, bright yellow, or deep purple to rusty red. The iron is usually found in the f ...

deposits. In 1702,

Peter the Great Peter I (, ; – ), better known as Peter the Great, was the Sovereign, Tsar and Grand Prince of all Russia, Tsar of all Russia from 1682 and the first Emperor of Russia, Emperor of all Russia from 1721 until his death in 1725. He reigned j ...

ordered the construction of an iron

foundry A foundry is a factory that produces metal castings. Metals are cast into shapes by melting them into a liquid, pouring the metal into a mold, and removing the mold material after the metal has solidified as it cools. The most common metals pr ...

there. In 1931, Novolipetsk Iron and Steel began construction of a plant on the site of the iron ore mine. Prospering down through the decades, Novolipetsk became a

joint-stock company A joint-stock company (JSC) is a business entity in which shares of the company's stock can be bought and sold by shareholders. Each shareholder owns company stock in proportion, evidenced by their shares (certificates of ownership). Shareho ...

in 1992 and then in 1993 began the process of

privatization Privatization (rendered privatisation in British English) can mean several different things, most commonly referring to moving something from the public sector into the private sector. It is also sometimes used as a synonym for deregulation w ...

by distributing company shares to its employees. The company seems to be acquisitive; see list of related organizations. In 1998,

Vladimir Lisin Vladimir Sergeyevich Lisin (born 7 May 1956) is a Russian billionaire businessman. He is the chairman and majority shareholder of Novolipetsk (NLMK), one of the four largest steel companies in Russia. According to ''Bloomberg Billionaires Index' ...

became the chairman. The manufacturing area in Lipetsk covers 27 square kilometers. Less than half of NLMK's output of steel is sold in Russia. The company's primary source of iron ore is now

Stoilensky GOK OJSC Stoilensky GOK is an iron ore company in Russia. Its main facility, the Stoilensky Mining and Beneficiation Plant (SGОК), is located in Stary Oskol, in the Belgorod region. Stoilensky is associated with Novolipetsk Steel and accounts for ...

, a company which is 350 km from the mills at Lipetsk.

Business

Acquisitions

The largest of NLMK's acquisitions was a 50% stake in a joint venture with the

Duferco Duferco Participations Holding SA, is a company based in Luxembourg City, Luxembourg. Its main business is trading, producing, importing and exporting steel. History Duferco was founded in 1979 by Italian Bruno Bolfo. His goal was to learn fr ...

Group in December 2006. The venture includes one steel plant and five rolling mills in Western Europe and the United States. The joint venture also includes service and distribution facilities located in Europe. In 2021, the company's revenue amounted to 793 billion rubles. Other acquisitions include: * OJSC Dolomite, miner and processor of metallurgical dolomite, acquired in 1997 *

OJSC Stagdok A public joint-stock company, abbreviated PJSC (, abbreviated ) or open joint-stock company, abbreviated OJSC (, abbreviated ), is a type of company in many successor states of the Soviet Union, particularly in Russia. Its distinguishing featur ...

, miner and processor of fluxing

limestone Limestone is a type of carbonate rock, carbonate sedimentary rock which is the main source of the material Lime (material), lime. It is composed mostly of the minerals calcite and aragonite, which are different Polymorphism (materials science) ...

, acquired in 1999 *

OJSC Stoilensky GOK OJSC Stoilensky GOK is an iron ore company in Russia. Its main facility, the Stoilensky Mining and Beneficiation Plant (SGОК), is located in Stary Oskol, in the Belgorod region. Stoilensky is associated with Novolipetsk Steel and accounts for ...

, iron ore supplier, acquired in 2004 (97%) *

OJSC TMTP A public joint-stock company, abbreviated PJSC (, abbreviated ) or open joint-stock company, abbreviated OJSC (, abbreviated ), is a type of company in many successor states of the Soviet Union, particularly in Russia. Its distinguishing featur ...

, operator of the

Black Sea The Black Sea is a marginal sea, marginal Mediterranean sea (oceanography), mediterranean sea lying between Europe and Asia, east of the Balkans, south of the East European Plain, west of the Caucasus, and north of Anatolia. It is bound ...

port of

Tuapse Tuapse (; , Ṫuapsă ) is a town in Krasnodar Krai, Russia, situated on the northeast shore of the Black Sea, south of Gelendzhik and north of Sochi. Population: Tuapse is a sea port and the northern center of a resort zone which extends sou ...

, acquired in 2004 (controlling interest) * License for the large coking

coal Coal is a combustible black or brownish-black sedimentary rock, formed as rock strata called coal seams. Coal is mostly carbon with variable amounts of other Chemical element, elements, chiefly hydrogen, sulfur, oxygen, and nitrogen. Coal i ...

deposit Zhernovskoie 1 in the Kuzbass region of Russia, acquired at State auction in 2005 * DanSteel A/S, Danish steel rolling company, acquired in 2006 *

OJSC Altai-koks Open Joint-Stock Company Altai-Koks () is one of the largest Russian producers of coke and by-products. It produces coke and a wide range of chemical products. The company has a 13% share of overall Russian coke production. Geography & History ...

, acquired in 2006 *

VIZ-Stal VIZ-Stal is a producer of cold-rolled electrical steels and the largest producer of grain-oriented electrical steel in Russia. Its share of global grain-oriented electrical steel production is almost 11 per cent. Over 80 per cent of its products a ...

, the second-largest Russian

electrical steel Electricity is the set of physical phenomena associated with the presence and motion of matter possessing an electric charge. Electricity is related to magnetism, both being part of the phenomenon of electromagnetism, as described by ...

producer, acquired in 2006 * Sharon Coatings

Ecology

Since 2007 NLMK has implemented a number of investment projects on

environmental protection Environmental protection, or environment protection, refers to the taking of measures to protecting the natural environment, prevent pollution and maintain ecological balance. Action may be taken by individuals, advocacy groups and governments. ...

. In 2009 it stopped discharges of

industrial wastewater Industrial wastewater treatment describes the processes used for treating wastewater that is produced by industries as an undesirable by-product. After treatment, the treated industrial wastewater (or effluent) may be reused or released to a s ...

into the river

Voronezh Voronezh ( ; , ) is a city and the administrative centre of Voronezh Oblast in southwestern Russia straddling the Voronezh River, located from where it flows into the Don River. The city sits on the Southeastern Railway, which connects wes ...

. As the result of all the activities, the water consumption of the NLMK Group decreased from 120.4 million cubic meters per year in 2008 to 77.2 million cubic meters per year in 2012, and emissions into the atmosphere decreased by 40%. NLMK reported Total CO2e emissions (Direct + Indirect) for the twelve months ending 31 December 2020 at 33,587 kilotonnes(+1,365/+4.2% y-o-y).Alt URL
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References

External links