NLMK DanSteel to participate in European programme to improve constructions of offshore wind turbines

NLMK DanSteel A/S, part of NLMK Europe Plate and Denmark’s only manufacturer of plates, has joined the European research and development programme aimed at improving the construction of foundations for offshore wind turbines in order to reduce their weight and cost, as well as raise the investment appeal of wind generation.

Other participants from the Danish side are DONG Energy and BladtIndustriesA/S, manufacturer of foundations for turbines. The research project is carried out by the UK Carbon Trust, Offshore Wind Accelerator programme (OWA), aimed at promoting offshore wind generation and reducing the cost of wind energy.

As part of the experimental programme, NLMK DanSteel will supply thick plates of special dimensions made from high-strength steel to be made into piles used in the foundations for new-generation turbines.

Igor Sarkits, NLMK Europe Plate CEO, said:

“NLMK DanSteel is a leading supplier of thick plates for North European wind generation. We view this segment as the most prospective and strategically important not only in terms of business development, but also as part of NLMK Group's policy aimed at promoting advanced environmental technologies.”

The Research has shown that the current geotechnical design for the foundations of offshore wind turbines is very conservative. Oxford University, Imperial College London and University College Dublin have developed a new progressive method. To implement it, a series of experiments needs to be performed using large-dimension steel piles under lateral load. Experiments will be held in the coastal waters of Dunkirk (France) and Cowden (Great Britain). At the end of 2014 it is planned to use the results of the experiments to develop an industrial prototype for the new type offshore wind turbine foundations.

Currently, 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.^[1]

^[1]The official website of Denmark, http://denmark.dk/en/green-living/wind-energy/

About NLMK DanSteel A/S

NLMK DanSteel A/S is a thick plate production facility within NLMK Europe Plate Products Division, owned by NLMK Group, Russia, one of the world’s largest steel producers. With a total capacity of 0.7 million tonnes, NLMK DanSteel A/S 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. The facility has a workforce of approximately 370 employees.

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.

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 worth project is part of the company’s strategy to leverage its strong position in the plate markets.

About NLMK Group

NLMK Group is a vertically integrated steelmaking company, and Russia’s leading manufacturer of steel and HVA rolled products. NLMK Group’s high-quality steel products are used in a variety of industries, from construction and machine-building to the manufacture of power generation equipment and offshore wind turbines.

NLMK’s production facilities are located in Russia, Europe and the USA. The Company’s crude steel capacity is over 17 m tpa, of which approximately 16 m t are located in Russia. The Company generated $10.9 billion in revenue and $1.5 billion in EBITDA in 2013.

NLMK’s ordinary shares are traded on the Moscow Stock Exchange (ticker “NLMK”) and its global depositary shares on the London Stock Exchange (ticker “NLMK:LI”).

Based on NLMK Group information