MOSCOW, September 14 (RIA Novosti) - Novolipetsk Steel [RTS: NLMK] said Thursday it expected its average operating income to increase to $3.7 billion a year by 2011.

The company said Wednesday its operating income in the first half of this year fell 16% to $925.3 million.

Novolipetsk Steel, one of Russia's biggest steel and rolled stock producers, said it intends to reach the target by implementing its strategy of stable growth.

Under the strategy, the company plans to raise steel output by 40% to 12.4 million metric tons a year, and rolled stock production to 9.5 million metric tons, including 3.5 million metric tons to be produced at facilities abroad.

Vladimir Lisin, the chairman of the company's board of directors, said the purchase of the Urals-based international private steel maker VIZ-stal in August 2006 produced a synergy effect of $180 million.

"The purchase of VIZ-stal has produced a high synergy effect and enabled us to save a total of $180 million," Lisin said.

Lisin said the rate of return at VIZ-stal was currently more than 50%.