Magnitogorsk Iron and Steel Works’ (MMK) hot-rolling mill 2000 produced 527,955 tonnes of rolled metal in July 2018, a new monthly record for this unit.

The previous record of monthly output of hot-rolled steel was achieved by MMK’s most productive rolling unit quite recently: in May the mill produced 527,505 tonnes of product.

2016 04 07 064954The unit, commissioned in 1994, is one of the most powerful in Russia. It is located within MMK’s sheet rolling shop No. 10 (LPTS-10). In the middle of the 2000s, the mill was reconstructed. As part of the modernisation programme, a fourth heating furnace was built and the mechanical equipment of the mill was renewed, allowing the production of a thicker range and the improvement of the mechanical properties of the products. The productivity of the unit has also increased, reaching 6 million tonnes per year. In recent years, the mill has been working at maximum capacity. In 2015, the unit crossed the production threshold of 100 million tonnes of hot-rolled products.

All currently existing steel grades can be produced by the mill’s equipment. The width of the produced sheet varies from 760 to 1,830 millimetres. The range of products manufactured by the unit is the broadest at the Magnitogorsk Iron and Steel Works, numbering approximately a thousand items. The variety of ways in which the mill's products can be applied is also diverse: including pipe production, construction industry, engineering. The mill produces naval and structural types of steel, as well as rolling steel, from which automotive sheets are subsequently manufactured.

About MMK

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 2017, the company produced 12.9 million tonnes of crude steel and 11.6 million tonnes of commercial steel products. MMK Group had sales in 2017 of USD 7,546 million and EBITDA of USD 2,032 million.

Published inProduction

Magnitogorsk Iron and Steel Works (MMK) is expanding its innovative cooperation with Oracle, having chosen the corporation as its strategic partner for the next five years in the implementation of the concept ‘Industry 4.0’.

The optimisation and unification of MMK’s business processes on the basis of a unified Corporate Information System (CIS) will facilitate the increase in the business efficiency of a leading Russian metal producer. The large-scale cooperation programme also includes the possibility of industrial use of the cloud services Oracle Cloud.

2016 04 07 064954In the course of the project’s implementation, MMK will update its corporate information system to the latest version of Oracle E-Business Suite R12 and expand the ERP system to other companies of the Group, which will almost double the coverage of employees working in a single information field.

The large-scale modernisation programme will enable the completion of the ‘Industry 4.0’ tasks via the integration of all the company’s information flows. This unified information system includes the management of production (continuous and discrete), inventories, repairs, purchases (including an electronic trading platform), finances, personnel (including payroll), projects, orders and sales.

Strategic cooperation with Oracle will ensure the further innovative development of MMK, including the introduction of new tools and technological discoveries. The company is considering the possibility of industrial use of Oracle’s SaaS-services for management of the company’s performance (EPM Cloud), personnel (HSM Cloud), as well as e-commerce and sales management (CX Cloud).

Andrey Eremin, Director for Economics at MMK and the project manager, said: “The new environment demands new approaches to the development of information systems. The concept ‘Industry 4.0’ relies on end-to-end information flows as sources for the modelling of the enterprise’s processes and for forecasting the results of its activity. The modernisation of MMK’s corporate information system will enable the optimisation of business processes and guarantee the possibility of further development of the CIS, taking into account the new functional possibilities of the Oracle E-Business Suite.

“The corporate information system shows not only the results of the financial and economic activities of the company, but also the entire technological chain of production, whilst the operating status of all large mills and units, and delays and equipment repairs are monitored promptly. This real-time data about the enterprise's activity is shown in the system. The creation of a single information space for all organizations of MMK Group will allow managers to make more effective management decisions more quickly, and as a result, lead to an increased efficiency of the business of MMK Group. We see Oracle as a strategic technological partner capable of providing the most appropriate innovative solutions in line with our strategy.”

The launch of the pilot operation of the corporate information system, upgraded to the Oracle E-Business Suite R12 version, is planned for April 2019, and the start of the industrial operation is scheduled for the Metallurgy Day in July 2019.

Sergey Tabulin, Director of Oracle’s Department of Business Applications in Russia, said: "It is strategically important for us to expand cooperation with global industry leaders such as MMK Group. Our partnership has been successfully developing over the last 15 years and we are glad that we are entering a new innovative stage in the implementation of the ‘Industry 4.0’ concept. Today, enterprises around the world need to follow innovative trends and offer products and services that are better and faster than those of their competitors. We are happy to support the strategic plans of one of the largest metals & mining enterprises in the world, with the best cloud services and solutions in their class, to ensure the growth of productivity and business efficiency in conjunction with the requirements of the industry and the digital age.”

Published inProduction

The reconstruction of Magnitogorsk Iron and Steel Works’ (MMK) blast furnace No.1 has been completed in the run up to the Day of the Metallurgist. The history of the company dates back to the launch of this blast furnace in 1932. The new equipment will enable the company to significantly reduce its ecological pressure on the environment.

2016 04 07 064954The cost of the large-scale project, which was carried out in under six months, was RUB 5.4 billion, of which RUB 2.35 billion were allocated for the cost of equipment, while the rest was allocated to the construction and assembly of the works and other costs. As part of the reconstruction process, a technical refitting of the furnace was carried out, which involved the complete dismantlement and replacement of all the old elements in the furnace. It was the first time in MMK’s practice that part of the furnace was built by the company ‘Danieli Corus’ with copper horizontal fridges.

There has also been a change in the configuration and the construction of the casting beds, as they are now two-tiered. As a result, in the intermediary space it is now possible to fit transportation flumes for pig iron and slag and aspiration system air ducts, without taking up additional space at the site, which improves the architecture of the blast furnace, and also solves the problems relating to work and environmental conversation. 

The aspiration system enables the immediate removal of dust-laden gases from their site of production, which as a result prevents the emission of pollutants into the working space of the unit and the atmosphere. The key technological equipment for the processing of pig iron and slag has been replaced by modern hydraulic equipment developed by the company Dneprohydromach, which also provided the gas-cleaning equipment for the aspiration system in the casting beds.

The removal of dust in the stock houses will be carried out with the help of the equipment from the company ‘Ekotex’. It is a system designed for the trapping of solid particles from the aspiration and technological gases, which are produced during the preparation of burden for the blast furnaces. The introduction of the aspiration system in the casting beds will effectively reduce the volume of harmful emissions released and improve working conditions for our metallurgists. The reconstruction of blast furnace No.1 and the construction of the aspiration system will reduce dust emissions by 600 tonnes a year.

Also as a part of blast furnace No.1’s reconstruction project, the reconstruction and the further equipping of the premise adjoining the casting beds, was undertaken. A block of additional rooms for casting beds which can accommodate the pump-and-accumulator station and priming pump station; and which is equipped with an electrical, ventilation and compressed air rooms. A modular compressor station was built, which serves as the connection for the complex of casting beds to the existing networks. PO Montazhnik was the general contractor for the reconstruction of blast furnace No.1, and the general project developer was Magnitogorsk’s Gipromez.

Blast furnace No.1, which on 1 February 1932 produced the first pig iron in Magnitogorsk, was built by the American company ‘McKee’ (Arthur G. McKee & Co). At the end of the 1990s it was fully reconstructed, in fact it was rebuilt from scratch. After this her volume increased to 1,370 m³, and her productivity reached 1.2 million tonnes per year (3000 tonnes of pig iron on a daily basis).

About MMK 

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 2017, the company produced 12.9 million tonnes of crude steel and 11.6 million tonnes of commercial steel products. MMK Group had sales in 2017 of USD 7,546 million and EBITDA of USD 2,032 million.

Published inProcessing

MMK’s section workshop produced its 20 millionth tonne of long products. It was produced in the capacity of the updated section rolling factory.

2016 04 07 064954In 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.

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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.

2018 02 08 074333Andrey 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.

Published inProduction

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.

2016-04-07 064954MMK’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.