VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN

Working Day

3 september, 2010 14:00

Prime Minister Vladimir Putin meets with Chairman of the Board of Novolipetsk Steel (NLMK) Vladimir Lisin

Prime Minister Vladimir Putin meets with Chairman of the Board of Novolipetsk Steel (NLMK) Vladimir Lisin
Mr Vladimir Lisin told Prime Minister Vladimir Putin about his company’s new projects, focusing on the construction of a furnace in Lipetsk. He emphasised that the company’s priorities include workplace safety, being environmentally friendly, labour productivity and, consequently, high social standards.

Transcript of the beginning of the meeting:

Vladimir Putin: Mr Lisin, now we're mid-way through the year, how is your business faring? I am aware that you've got a great deal of ongoing investment projects. You have restored production almost to pre-crisis levels and now have your sights set on new ambitious projects. Some 10,000 people are employed at the construction sites for your new facilities. You have far-reaching infrastructure plans and are already implementing several projects. What challenges are you facing?

Vladimir Lisin: It is important that we continue with our development programme. We're building a steel mill in the Kaluga Region to manufacture 1.5 million metric tons of steel annually. This year we commissioned a new rolling mill in the Sverdlovsk Region. We're building a blast furnace in Lipetsk, which we expect will allow us to increase steel production by 40%.

There is one problem though. It relates to technical requirements and regulations. But given that we continued each of our programmes even during the recession, I think we'll be able to see them through to the end.

We also consider transport infrastructure a priority. This year we have brought into operation a grain terminal in Tuapse and a freight and vehicle terminal in St Petersburg. The first facility at the St Petersburg container terminal will be launched later this year.

Vladimir Putin: At the port?

Vladimir Lisin: Yes, at the port. We removed coal and other contaminants from the site. Our main modernisation programme involves upgrading our facilities with a focus on local concerns: workplace safety, reducing their negative environmental impact, increasing labour productivity and improving the social standards in the area.

The average monthly salary at our steel concerns is 26,700 roubles. Those employed at our transport infrastructure facilities receive slightly less, but still their salaries are higher than elsewhere in the region on average.

We're not facing any acute problems. There are several unresolved issues in single-industry towns though. In one of them, Zarinsk in the Altai Territory, our company accounts for 90% of budget revenue, and we need to devote quite a lot of attention to local infrastructure. We provide funds to prop up the town's heating system, which services kindergartens and sports facilities.

Several other single-industry towns are facing severe problems, and I think the federal government should provide support to them - because they just can't cope on their own. The rest is fine.

Vladimir Putin: Which new projects do you think are the most promising, ambitious and interesting?

Vladimir Lisin: It's definitely the furnace we're building, it's the first furnace to be constructed since the demise of the Soviet Union and the first new furnace of such a capacity. As I've just said, it will allow us to increase steel production by 40% - it'll be quite a big step forward. This facility will be energy-efficient and will run on associated gas, reducing natural gas consumption by 30%. We are taking advantage of modern technology to meet the most recent international standards, increase labour productivity and improve workplace safety. The cost of the project is over $1.5 billion.

Vladimir Putin: In Lipetsk?

Vladimir Lisin: Yes, in Lipetsk. This is why we are expanding production capacity. This will be one of our major projects.

Another facility, a future mini-plant in Kaluga, will enable us to recycle all the scrap metal collected in the Moscow Region.

Moving on to the production of construction materials in the central regions of the European part of Russia, I can say that our facilities will satisfy local demand to the letter.

Another of our priorities is the production of flat rolled steel used in the auto industry. We have two electrical-sheet steel mills, in Yekaterinburg and Lipetsk.