NLMK plans to close a plant in France

NLMK Group intends to close an unprofitable coated steel plant in Botor. The plant is part of the European division of the group - NLMK Coating. The annual production capacity of the plant is 350 thousand tons of cold-rolled steel and 240 thousand tons of galvanized steel.

The main consumers of electro-galvanized steel from the plant were car manufacturers, but in recent years they increasingly prefer hot-dip galvanized steel, since it is cheaper and more affordable, which caused a sharp decline in demand for electro-galvanized steel produced by NLMK's plant in France.

NLMK Coating has been looking for buyers for this plant since March last year, but to no avail. The management of NLMK Coating says that if the plant is not sold soon, the company will be forced to close the plant, as it can no longer bear losses, while continuing to search for a buyer. NLMK Coating is in consultation with the company's trade union in connection with the possible termination of production activities.

At the same time, another plant, part of NLMK Coating, is located in Strasbourg, providing the production of 320 thousand tons of hot-dip galvanized and 120 thousand tons of polymer-coated steel, does not intend to stop it.

NLMK's European division includes two divisions: Flat Rolled with a production capacity of 1.7 million tonnes and Thick Sheet with a production capacity of 1.8 million tonnes. The division unites 6 enterprises producing hot-rolled and cold-rolled products and steels with various coatings, as well as an extensive network of distribution and service centers in Europe. More than 3 thousand people are involved in the production.

NLMK's production assets are concentrated in Russia, the USA and Europe. Vladimir Lisin owns 85.54 percent of NLMK.