NLMK Group launches strategy 2017

NLMK Group, the international steel company, launched its ‘Strategy 2017’. Strategy 2017 targets net gains of USD 1.0B per annum and contemplates total new investment of USD 1.6B. Strategy 2017 is focused on unlocking significant internal potential of the Group’s businesses by boosting operational and process efficiency across the entire production chain, enhancing vertical integration into key raw materials, increasing sales of high-value added (HVA) products, and pursuing environmental, safety and human capital development programmes.

In implementing Strategy 2017, the Group will maintain its commitment to a conservative financial policy aimed at further debt reduction and financing investments through internal cash flow. As a result, the Group targets a Net Debt/EBITDA leverage ratio of 1.0x. Objectives and targets of Strategy 2017 include improvement in operational efficiency with the 100% rollout of NLMK Production System, which is expected to bring in net gains of USD 330M per annum and the setting up of a resource base that provides 100% self-sufficiency in iron ore with a flexible feed structure (pellets, sinter, sinter ore) and reduces consumption of valuable resources to achieve net gains of USD 480M per annum. It also intends to consolidate its position in strategic markets and improve sustainability and safety.

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