Russia's largest pellet plant to be built at NLMK by Siemens-led consortium - further strengthening of company competence in iron ore agglomeration technology

The Russian steel producer Novolipetsk Steel (NLMK) placed an order with a consortium comprised of Siemens VAI Metals Technologies and Outotec Oyi, Espoo, Finland for the supply of a new pellet plant with an annual production capacity of six million tons of magnetite pellets per year. The plant will be built at NLMK's Stoilensky Mining and Beneficiation Plant (SGОК) in Stary Oskol. The total order value for Siemens is approximately 125 million euros. The pellet plant is scheduled to be started up in 2014. This project marks the further expansion of Siemens activities in the field of iron ore agglomeration technology.

A major technical upgrade and expansion program is underway within the NLMK Group. The new pellet plant to be built at SGOK in Stary Oskol in the Belgorod region, 600 kilometers south of Moscow, will be based on traveling grate induration technology and will produce high-grade magnetite pellets that will have an iron content in excess of 65%.

For this project Siemens VAI will supply engineering and equipment for the preparation of the iron ore concentrate, material handling and storage, utilities, and the related electrical and automation systems. A key reason why NLMK selected Siemens VAI for this project was because of the company's proven capability in the implementation of large-scale complex projects.

The Finnish company Outotec will supply the process technology and plant equipment for the iron ore pelletizing plant. NLMK is responsible for civil works, the structural-steel supply and complete erection of the pellet plant facility.

Novolipetsk Steel is one of the world's leading steel companies with its main steelmaking and rolling facility located in Lipetsk, Russia, approximately 500 kilometers south of Moscow. SGOK, a wholly-owned subsidiary of NLMK, is Russia's third largest iron ore producer and accounted for approximately 14% of the total iron ore output in Russia in 2010.

Further information about solutions for steel works, rolling mills and processing lines is available at http://www.siemens.com/metals

The Metals Technologies Business Unit (Linz, Austria), part of the Siemens Industry Sector, is one of the world's leading suppliers of plant construction and engineering in the iron and steel industry as well as in the flat rolling segment of the aluminum industry. The Business Unit offers a comprehensive product and service portfolio for metallurgical plants and equipment as well as integrated automation and environmental solutions covering the entire lifecycle of plants. For more information, visit www.siemens.com/metals