EVRAZ

• By 2006 more than 1.5 billion tonnes of iron ore were extracted in Kachkanarsky Ore Mining and Processing Enterprise.
• The copper extracted in Visokogorsky Ore Mining and Processing Enterprise was used for facing the Statue of Liberty constructed in 1886.
• For 75 years KMK steel workers have produced the rails enough to turn round the Earth 23.5 times.

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NTMK

NTMK is located in Nizhny Tagil, Sverdlovsk region, approximately 140 kilometers north of Ekaterinburg and approximately 2,000 kilometers north-east of Moscow. Nizhny Tagil is one of the oldest mining and steel production centers in Russia. NTMK currently occupies an area of approximately 1,490 hectares, most of which it owns. In 2007, NTMK produced 5.4 million tonnes of pig iron, 5.8 million tonnes of steel, and over 5.2 million tonnes of rolled products.

NTMK is also the world’s biggest processor of vanadium-enriched titan ferrous ores with succeeding vanadium recovery in blast oxygen furnaces and in oxygen converters using special technologies.

Facilities

NTMK is an integrated steel production plant. It consists of coke-chemical production facilities, blast furnaces, steel making facilities (oxygen converters as well as open hearth furnaces), continuous casters and rolling mills.

Coke production. The coke-chemical production currently consists of two coking plants, which currently operate six coking batteries. NTMK also operates by-products production facilities, including a chemical plant, coke pitch plant and pitch distillation and rectification plant, the products of which it sells primarily to third parties.

Iron production. NTMK operates five blast furnaces, two of which have been reconstructed in order to improve its efficiency in processing high vanadium content iron ore (such as that produced at KGOK). The annual aggregate capacity of the blast furnaces is 6.4 million tonnes. NTMK produces both steel making iron and natural alloy vanadic crude iron. The unique vanadium ferrous ore from KGOK results in the natural ferro-alloying of steel, which enables NTMK to produce steel and finished products with improved characteristics for operation in low temperatures. Blast furnace slag is granulated and then sold to cement plants.

Steel production. The steel production shop comprises both an oxygen converter plant with annual design capacity of 3.5 million tonnes and an open hearth plant. Since 1993 the open hearth furnaces at NTMK have gradually been replaced by the oxygen converter process, which is more cost efficient and environmentally cleaner.

Continuous casting. NTMK operates four continuous casting machines in the converter shop with an aggregate annual production capacity of 3.1 million tonnes.

Rolling mills. NTMK operates seven primary rolling mills (an universal beam mill, a heavy section mill, a rail and structural mill, a ball-rolling mill, a wheel-rolling mill, a tyre mill and a rail fasteners mill). The design of these mills allows for a flexible product mix. NTMK upgraded its wheel rolling mill during 2004-2006.

Products

NTMK's primary products are railway products (rails and wheels), construction products and pipe blanks, as well as semi-finished products.

Quality control

NTMK's products adhere to strict specifications and standards. NTMK's rolling mills and refractory manufacturing facility are certified under DIN EN ISO 9001:2000, and NTMK's products have received various Russian and foreign certifications, including certification of continuous casting slabs by Lloyd's Register.

History

Production at NTMK started in 1940 after 10 years of construction. During World War II, the plant's major product was armour plate, and approximately one-third of Soviet combat tanks were armoured with steel manufactured at NTMK. NTMK was privatised and transformed into an open joint stock company under Russian law in 1992.

In 1999, prior to Evraz’s acquisition of a controlling interest by NTMK, due to poor market conditions and inefficient management, NTMK failed to make payments on some of its debt and trade obligations, and bankruptcy proceedings were instituted against NTMK. In November 1999, NTMK and its creditors concluded a settlement agreement, which was approved by a court on 9 December 1999, ending the bankruptcy proceedings and rescheduling NTMK’s payments of debt and trade payables and its tax arrears and social contributions. Evraz acquired control over NTMK after the conclusion of this settlement agreement. In November and December 2004, NTMK pre-paid most of the remaining amounts due under the settlement agreement.

In March 2007, Evraz made a voluntary offer to NTMK’s minority shareholders, which, following the voluntary offer period and a mandatory buyout procedure, resulted in Evraz becoming NTMK’s sole shareholder in October 2007.

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