NLMK's Expanding Milk Production to Come in Top 5 in Russia

Russian steel maker Novolipetsk Iron & Steel Works is implementing a project to support agriculture. The company is completing the construction of dairy farming complexes in the Tver and Kaluga regions and the Altai Territory, the work of which will increase the supply of natural milk to the population by 180,000 tonnes per year. NLMK acts as a technical customer, organizes project financing and construction management using the best practices of automation, environmental friendliness and product safety, and also ensures the implementation of lean manufacturing principles to reduce losses. The company has selected the most efficient equipment from world manufacturers, which allows achieving the highest possible crop yields in the current climatic conditions, high productivity and milk quality.Three complexes in the Tver region are under construction with a total livestock of 25,000 heads, including 8,600 dairy herds, and a milk production volume of more than 105,000 tonnes per year. In terms of the number of cattle, this will be one of the largest agricultural clusters. For future employees of the farms, a residential village with cottages and townhouses is being built. Together with local governments, the repair and construction of road infrastructure is being completed.Another complex in the Altai Territory is under construction with a total livestock of 6,000 heads, including 2,500 dairy herds, and a milk production volume of more than 30,000 tonnes per year. In 2023, the repair of the road infrastructure, which is being carried out by the administration of the Altai Territory, will be completed.Also reconstruction in the Kaluga region will ensure the growth of the dairy herd from 2,400 to 8,000. Today, the enterprise produces up to 30,000 tonnes of milk per year, after construction is completed, the capacity will be more than 45,000 tonnes of milk per year.The construction of all facilities will be completed in the second quarter of 2023. The total investment will amount to RUB 27 billion. After the construction is completed, the companies of the RUMELCO group will be involved in the operation. The capacities of the complexes will allow the group to enter the top 5 producers of raw milk in Russia. RUMELCO is already developing crop production to provide animal feed, and its own feed will cover 80% of the needs of livestock complexes. In the Tver, Kaluga regions and Altai Territory, RUMELCO owns land plots with a total area of 47,000 hectares. According to the results of the harvesting campaign in 2021, the harvest amounted to about 135,000 tonnes. To ensure crop production, RUMELCO operates a fleet of about 500 units of modern self-propelled and trailed equipment, including 40 grain and forage harvesters and more than 100 tractors with a total value of 3.5 billion rubles.

NLMK's Expanding Milk Production to Come in Top 5 in Russia

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