OJSC Magnitogorsk Iron and Steel Works ("MMK" or "the Company") (LSE: MMK) aims for 100% of car manufacturers operating in Russia to accept its metal. The Company consistently implements its import substitution strategy and receives approved rolled steel supplier status.
MMK’s rolled steel has already been approved by 80% of carmakers in Russia. 60% of them procure MMK’s metal on a regular basis. In particular, MMK is a key supplier of rolled steel for AvtoVAZ and UAZ. Furthermore, MMK has received approval from a number of international companies with localized production in Russia. The Company has a track record of supplying steel to such producers and continues to promote its products for existing and potential car plants. In the coming years, MMK plans for 100% of car manufacturers who localize their production in Russia to receive MMK’s steel.
Currently, MMK is a leading supplier of ferrous metal products for car plants and related facilities which produce various car components. MMK holds leading positions in supplying cold-rolled and hot-dip-galvanized steel for the car industry. This was mainly supported by the commissioning of a state-of-the-art cold-rolling Mill 2000 in 2011-2012. The launch of this new facility enabled MMK to convincingly compete with international peers. Thanks to its technological specifications, the Mill 2000 is able to meet the most rigorous requirements for surface quality of cold-rolled and hot-dip-galvanized steel, cover tight thickness requirements, as well as apply zinc-iron (galvanneal) and phosphate coating for anti-corrosion protection, produce high-tensile IF-HS, HSLA, BH and DP steel, which is demanded by producers of cars and car components.
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 the 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 2015, the company produced 12.2 million tonnes of crude steel and 11.2 million tonnes of commercial steel products. MMK Group had sales in 2015 of USD 5,839 million and EBITDA of USD 1,668 million.