MMK to Maintain Production Volumes, Focus on Maximum Efficiency
02/10/2015 - OJSC Magnitogorsk Iron and Steel Works (MMK) plans to maintain production volumes over the next 10 years at approximately 12 million tonnes of metal annually at its key facility in Magnitogorsk, Russia.
In order to achieve top performance, the company will focus on achieving maximum efficiency.
Maxim Lapin, director for business development and efficiency at MMK, during his speech at Russian & CIS Metals & Mining Week 2015 held by Adam Smith Conferences, said “Our strategy for the next 10 years is to focus on efficiency at our facility in Magnitogorsk. Efficiency means production with minimal costs and of relevant quality level.”
According to Lapin, Russian metal market dynamics in the coming years will depend upon changes in Russia’s economy. If Russian GDP growth slows down, demand in metal will stagnate and there will be a certain decrease in demand for metal from key consuming sectors, such as construction, pipe production and the automotive industry in the coming three years, followed by demand recovery. These sectors remain a priority for MMK, as is demonstrated by significant production growth at Mill 5000 and cold-rolled products Mill 2000 in 2014, as well as a positive outlook for their utilization in 2015, said Mr Lapin.
MMK is one of the world's largest steel producers and a leading Russian metals company. The company's operations in Russia include a large steel producing complex encompassing the entire production chain, from preparation of iron ore to downstream processing of rolled steel. MMK turns out a broad range of steel products with a predominant share of high-value-added products. In 2014, MMK Group produced 13.0 million tonnes of crude steel and 12.2 million tonnes of commercial steel products. MMK Group had sales in 2013 of USD 8,190 million and EBITDA of USD 1,223 million.
Maxim Lapin, director for business development and efficiency at MMK, during his speech at Russian & CIS Metals & Mining Week 2015 held by Adam Smith Conferences, said “Our strategy for the next 10 years is to focus on efficiency at our facility in Magnitogorsk. Efficiency means production with minimal costs and of relevant quality level.”
According to Lapin, Russian metal market dynamics in the coming years will depend upon changes in Russia’s economy. If Russian GDP growth slows down, demand in metal will stagnate and there will be a certain decrease in demand for metal from key consuming sectors, such as construction, pipe production and the automotive industry in the coming three years, followed by demand recovery. These sectors remain a priority for MMK, as is demonstrated by significant production growth at Mill 5000 and cold-rolled products Mill 2000 in 2014, as well as a positive outlook for their utilization in 2015, said Mr Lapin.
MMK is one of the world's largest steel producers and a leading Russian metals company. The company's operations in Russia include a large steel producing complex encompassing the entire production chain, from preparation of iron ore to downstream processing of rolled steel. MMK turns out a broad range of steel products with a predominant share of high-value-added products. In 2014, MMK Group produced 13.0 million tonnes of crude steel and 12.2 million tonnes of commercial steel products. MMK Group had sales in 2013 of USD 8,190 million and EBITDA of USD 1,223 million.
