Magnitogorsk Iron and Steel Works (MMK) almost doubled its shipments to domestic car making sector in 2010 compared to 2009
In 2010, MMK delivered 406,000 mt of steel products to Russian car makers - almost twice as much compared to 209,000 mt in 2009. Local automotive sector accounted for 5.8% of MMK’s total domestic sales in 2010. The steelmaker’s major customers within domestic auto segment are AvtoVAZ, KamAZ and GAZ automobile plants.
One of the MMK’s strategic goals is making the company a key supplier of steel products to the Russian auto industry. To this end, MMK is implementing the Mill 2000 project in Magnitogorsk. This cold-rolling facility, when commissioned, will ensure production of world-class auto sheets.
Mill 2000 will be producing high-quality cold-rolled and galvanized products meeting the needs of the world’s leading auto makers and household appliances manufacturers. The first stage of the Mill 2000 (including continuous pickling unit linked to the five-stand cold-rolling mill) will be commissioned in July of this year. The mill’s total capacity will reach 2 million tons per year. Its advanced technologies will significantly increase the quality of cold-rolled and galvanized finished products.
Launch of the 1st stage of the MMK-Intercos service center and stamped components plant (commissioned in St. Petersburg last November) has become yet another milestone on the way towards s developing MMK’ cooperation with automakers. At present, MMK-Intercos, part of the MMK Group, has been implementing the 1st phase of the 2nd stage of the project.
MMK is among the world's largest steel producers and is one of the leaders of Russia's steel industry. 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 higher value added products. In 2010 the company produced 11.4 mln tons of crude steel and 10.4 mln tons of commercial steel products. MMK Group revenue in 2010 stood at USD 7.719 bn, EBITDA at USD 1.606 bn, profit for the period - USD 232 mln.