NLMK Group (LSE: NLMK), Russia’s top steel-producing company and one of the most efficient steel companies in the world, has begun delivering transformer steel to Siemens’ Voronezh-based plant. This steel will be used to manufacture core plates for power transformers.

Novolipetsk, NLMK’s Lipetsk production site, made the first two shipments in June and July. In the future, NLMK is plans to make monthly deliveries to ‘Siemens Transformers’ plant in Voronezh.

Ilya Guschin, NLMK Group Vice President for Sales, said:
“NLMK is among the global leaders in production of hi-tech steel products such as transformer steel. The quality of our steel and our reliability make us one of the key suppliers for leading global manufacturers of electrical goods in Russia and abroad. We continue to work on expanding our range of transformer steel, for example by developing new high-permeability grades, to be on the cutting-edge of innovation and help our clients lead in their respective fields.”

NLMK has been supplying plates, transformer and dynamo steel to Siemens plants since 2010. NLMK steel is used to manufacture wind turbines and offshore converter platforms, railway motors and power transformers. Currently, NLMK delivers its steel to Siemens plants in Germany, Austria, Hungary, United Arab Emirates, Brazil, Columbia, and Mexico. NLMK Group delivered a total of 6,100 tonnes of transformer steel to Siemens in 2014; and 3,500 tonnes in the first half of 2015.

Transformer steel is manufactured by Novolipetsk and by VIZ-Steel; an NLMK Group company. In 2014, Novolipetsk shipped approximately 90,000 tonnes of transformer steel, whilst VIZ-Steel shipped a total of 172,000 tonnes; with 50,000 tonnes and 86,000 tonnes shipped in the first half of 2015, respectively.

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