MMK’s section workshop produced its 20 millionth tonne of long products. It was produced in the capacity of the updated section rolling factory.
In 2005-2006, all of the old rolling machinery in the plant’s section workshop was replaced by three new, completely automated mills from the Italian firm Danieli, with a total production capacity of over 2 million tonnes per year. These mills were the first to be built in the territory of the former USSR in the post-Soviet era and were some of the most modern in the world in terms of equipment. Section rolling mill 450 has a capacity of up to 790,000 tonnes per year intended for rolling corners, channels, circles in bars, and strips. The small-grade mill 370 has a capacity of 585,000 tonnes to produce rebar and circles with a diameter of up to 50 mm, squares, and hexagons. The small-grade wire mill 170 has a capacity of 765,000 tonnes per year to produce wire rod and small thermally adjusted fittings. MMK’s new rolling mills deliver high productivity, flexibility of lines and a wide range of products in terms of types and sizes, as well as economy and efficiency due to automation of the production process.
In autumn 2008, the 5 millionth tonne of section product was produced at the new mills, in 2012 the 10 millionth tonne was produced, and in July 2015 the 15 millionth tonne. All three section mills are now functioning at full capacity and providing high quality rolled products for both MMK Group’s hardware division and third-party consumers. Last year, more that 1.8 million tonnes of rolled metal was produced in MMK’s section workshop. Earlier this year, the Magnitogorsk Iron and Steel Works finalised an investment contract with Danieli and Officine Meccaniche S.p.A. for the modernisation of a two-piece mill 170 worth 5.5 million euros. Modernisation will allow the air cooling line to obtain the final mechanical properties to bring it in line with Russian and world standards for high-carbon steel, and reduce the current downtime associated with equipment maintenance and repair.
Investor Relations Department:
Andrey Serov, Head of IR
tel.: +7 (3519) 24-52-97
PJSC Magnitogorsk Iron & Steel Works' (MMK) is pleased to announce that on January 29th, 2018, Moody’s rating agency upgraded the Company’s Issuer Rating to 'Baa3' from 'Ba1' with positive outlook.
Andrey Eremin, MMK’s Director for Economics, commented: “We at MMK are satisfied with the increased issuer rating. This is a proof that MMK has correctly formulated its strategic development priorities and introduced quite efficient tools to implement its strategy. Our priorities today include focusing on the key markets, internal efficiency, regular return on investors’ equity and corporate investment appeal.”
Moody’saction follows a sovereign rating action on the government of Russia which took place on 25 January 2018, during which Moody's changed the outlook on Russia's Ba1 long-term issuer and senior unsecured debt ratings to positive from stable. The change in the outlook on Russia's Ba1 ratings was driven by the following rating factors:
- Growing evidence of institutional strength. Russia's macroeconomic framework coped well with the oil price shock and with the impact of sanctions imposed to date, and enhancements have been made to the government's rule-based fiscal framework; and
- Relatedly, increased evidence of economic and fiscal resiliency that has reduced Russia's vulnerability to further external shocks arising from geopolitical tensions or from renewed declines in oil prices.
In a related decision, Moody's has raised Russia's country ceilings for foreign currency debt to Baa3/P-3 from Ba1/NP to reflect diminished concerns that the government might impose capital controls or otherwise ration foreign exchange reserves.
Moody's also raised the country risk ceilings for local currency-denominated debt and deposits to Baa2 from Baa3. A country ceiling generally indicates the highest rating level that any issuer domiciled in that country can attain for instruments of that type and currency denomination.
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 2016, the company produced 12.5 million tonnes of crude steel and 11.6 million tonnes of commercial steel products. MMK Group had sales in 2016 of USD 5,630 million and EBITDA of USD 1,956 million.
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.