25 Jan 2018 17:01

NLMK may acquire new assets given synergy - Lisin

DAVOS. Jan 25 (Interfax) - Novolipetsk Steel examines acquisition opportunities so long as they provide synergies, principal owner and board chairman Vladimir Lisin said at the Russian House, organized by Roscongress at the World Economic Forum in Davos.

"In principle, we look at everything that may, to a great extent, produce a synergistic effect. Neither ambition nor policy, only a synergistic effect. That is, extend our technological chain in one way or another," Lisin said when asked about possible acquisition of new assets. "If we happen on assets in which there is decent interest and the price is right, why not? We never turn down interesting items for extension of the business."

However, it is too early to speak about specific plans: "We are not concealing goals. But for now we can't say anything on this topic."

Lisin did not rule out an increase in capacity in Lipetsk this year. "I think that we have the ability this year to grow capacity at the facilities we have in Lipetsk," he said.

NLMK has production assets in Russia, Europe and the U.S. Overall capacity is 17 million tonnes per year, 16 million tonnes of which is located in Russia. NLMK's principal owner is Vladimir Lisin, whose 84% stake is held by Fletcher Group Holdings. The free float is 16%.