|Traded as||MCX: NLMK
|Key people||Vladimir Lisin (Chairman)
Alexey Lapshin (CEO)
|Revenue||US$12.1 billion (2012)|
|Net income||US$595.8 million (2012)|
Novolipetsk Steel, or NLMK, is one of the four largest steel companies in Russia with sales of more than US$11.7 billion in 2011 and 9.2 million tonnes of steel output. NLMK's share of domestic crude steel production was about 13% in 2007. It primary 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 a global slab and grain-oriented steel market leader, with c.13% and 20% global market shares, respectively.
Currently Novolipetsk Steel (NLMK) is one of the world's most profitable steel companies per tonne of production and by far the most profitable steel-making company in Russia with a 2007 EBITDA margin of 44%.
NLMK's assets are technically advanced and on par with its global peers. NLMK is fully self-sufficient in iron-ore through its 97% stake in Stoilensky GOK, Russia's 3rd-largest iron ore producer.
On December 15, 2005 the company listed 42 million (8.3% of the total number of shares) of its Global Depositary Shares (GDSs) on the London Stock Exchange (LSE: NLMK). Each GDS represents 10 ordinary shares.
In June 2006 NLMK altered its dividend policy and increased its target payout ratio from 15% to 20% of its net income under US GAAP. The company pursues the goal of bringing its total dividends over five-year period to 30%.
NLMK is headquartered in the city of Lipetsk, 500 km southeast of Moscow.
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 in 1992 and then in 1993 began the process of privatization by distributing company shares to its employees. The company seems to be acquisitive; see list of Related organizations. In 1998, Vladimir Lisin became the chairman. The manufacturing site 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, a company which is 350 km from the mills at Lipetsk.
NLMK's global M&A activity has been focused on assets which the company could affectively leverage for processing its low cost slabs into high value added products in its key export markets. The largest of NLMK's acquisitions was a 50% stake in a Joint Venture with the de:Duferco Group in December 2006. The JV includes one steel plant and five rolling mills in Western Europe and USA. The joint venture also includes service and distribution facilities located in Europe.
- OJSC Dolomite, miner and processor of metallurgical dolomite, acquired in 1997.
- OJSC Stagdok, miner and processor of fluxing limestone, acquired in 1999.
- OJSC Stoilensky GOK, iron ore supplier, acquired in 2004 (97%).
- OJSC TMTP, operator of Black Sea port Tuapse, acquired in 2004 (controlling interest).
- License for the large coking coal 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.
- The OJSC Altai-koks acquired in 2006.
- VIZ Stal, the second-largest Russian electrical steel producer, acquired in 2006.
- JMC Steel, a steel pipe manufacturer based in the US, with operations in Beachwood, Ohio, Welland, Ontario, Harrow, Ontario, and Chicago, amongst others.
- History of NLMK since 1931
- "Business sale makes Zekelman a billion-dollar man" The Windsor Star August 14, 2008
- Official site - English language version