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Multi-million worth investment

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    Havnevej 33, DK 3300 Frederiksvaerk - Phone: +45 4777 0333 - Fax: +45 4777 0302 - Mail: info@dansteel.dk

Russian investment over DKK 750 million in Denmark:

New rolling stand opens up new opportunities

The Russian steel company NLMK Group has invested more than DKK 750 million in a new rolling stand at NLMK DanSteel A/S in Frederiksværk. The 1,000-tonne rolling stand produces steel plates in widths of up to 4 m and thicknesses ranging from 5 mm to 20 cm.

On 23 April 2013, NLMK DanSteel A/S officially started production of steel plates on a brand-new rolling stand that represents an investment over DKK 750 million. This investment is one of the largest Russian business investments in Denmark ever.

The investment in the new rolling stand enables the company to consolidate its market position and helps to retain jobs in Denmark.

NLMK DanSteel A/S is a part of NLMK Europe Plate, a division of the Russian NLMK Group, one of the world’s largest steel producers.

The new rolling stand, supplied by SMS Siemag AG, Germany, can produce steel plates in widths of up to 4 m and thicknesses ranging from 5 mm to 20 cm. Compared to the old heavy-plate stand, purchased from the US in the 1960s, not only will the steel plates produced on the new stand be of a higher quality, they can also be larger and thicker. There is demand for such plates from European manufacturers in high growth areas such as the energy sector, offshore wind turbines, gas and oil platforms, special ships and bridges.

In 2012, 68 % of the company’s production was sold outside Denmark and approximately 10 % outside the EU. 

Major and complex project

The new rolling stand was not only a major investment but a highly complex project. The work of planning the rolling stand took some years, while practical construction of the foundations and installation of the rolling stand required the equivalent of 400 workers working 24/7 for approximately 3 months. Experts from Germany, Italy, Belgium, Denmark and a number of other countries were involved in the project. 

During the design phase there was a strong focus on the environment impact. Energy consumption was minimised throughout all production stages, and new water-treatment equipment was installed.

Hot leveller, roller tables, and a grinding shop also required modernisation, as did the systems of automation, power supply, hydraulics and IT.

The scope of this project is reflected by the following data: the rolling stand weighs 1,000 tonnes, the working rollers are 4.5 m long and 1 m in diameter. They roll steel at a pressure of up to 8,230 tonnes and are operated by two electric main engines at 7,000 kW or 9,500 hp.

Effective business model

NLMK Group’s business model is based on production of semi-finished products (slabs) close to the source of raw materials, while the finished products are produced close to the end-users. This model was applied successfully by DanSteel when the company was acquired by NLMK in 2006.

Today, the NLMK Group supplies slabs to its subsidiaries in Europe and the US, which work according to the just-in-time principle and with very short production times.  

For further information please refer to the respective websites: NLMK DanSteel A/S at www.dansteel.dk, NLMK Europe Plate at www.eu.nlmk.com and NLMK at www.nlmk.com
For further information from Yury Tarasov, CEO, please contact Ann Lis Eriksen (secretary) on tel. +45 4777 0333 or e-mail ann@dansteel.dk.

New Rolling Stand at NLMK DanSteel A/S

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