NLMK makes first shipments from new logistics centre

NLMK has completed the construction of a new on-site logistics centre and shipped the first batch of products to customers by road from its production site in Lipetsk, the company says. The centre will handle over 1 million tonnes/year of shipments.

Total investment in the project was approximately RUB 3 billion ($42.3 million), Kallanish notes. It covers an area of 30,000 square metres, can accommodate up to 70,000 tonnes of steel products and makes it possible to ship the entire mix of NLMK rolled products to consumers.

The new complex is equipped with an automated warehouse management system which will minimise the time required for steel product shipments, NLMK says.

“The key advantage of the new centre is its multimodality,” says NLMK vice president Ilya Gushin. “Our customers will be able to choose the type of transport that will deliver them NLMK products directly from the plant. This will cut costs and boost mobility at the same time.”

NLMK’s steel output and sales were impacted in the second quarter by declining demand in its traditional sales markets due to the Covid-19 pandemic (see Kallanish passim). Consolidated output of crude steel decreased to 3.9mt, down by -8% on-quarter and -3% on-year. However, second-quarter sales grew by 2% on-year to 4.4mt due to higher slab and pig iron exports, but on-quarter they declined by -3%.