The Russian steel producer Novolipetsk Steel 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 6 million tonnes of magnetite pellets per year.

The plant will be built at NLMK Stoilensky Mining and Beneficiation Plant in Stary Oskol. The total order value for Siemens is approximately EUR 125 million.

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 iron content in excess of 65%.

The pellet plant is scheduled to be started up in 2014.

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 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 palletizing plant. NLMK is responsible for civil works, the structural steel supply and complete erection of the pellet plant facility.

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.