Page 78-79 - MMK annual report 2011

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/ 2011 /
Social Sphere
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About Us
Board of Directors report on MMK’s
performance in 2011
Following on from the Strategic Development Plan through 2017 approved by the Board of Directors
in 2008, in 2011 a Business Development Plan through 2013 was drafted and ratified. The Business
Development Plan includes the following priorities:
Procurement of raw materials;
Expansion of steel products deliveries to the higher priority domestic market;
Consolidation of MMK’s position in the key export markets of Asia, the Middle East and North
Technical upgrading of OJSC MMK;
Improvement of the Quality Management System;
Improvement of the Corporate Governance System;
Minimization of environmental impact;
Improvement of the HR management system;
Enhancement of social security for OJSC MMK’s employees.
In 2011, the Board of Directors held 17 meetings and voted on 203 issues. The most significant decisions
with the greatest effect on the Company’s activity in the reporting year were the following:
Determination to establish a Committee for Audit, Committee for Strategic Planning and
Corporate Governance, and Committee for Nominations and Remunerations, all reporting to the
Board of Directors;
Decisions to approve long-term plans, projects, strategies and core activities of MMK and
companies within MMK Group;
Decisions governing the Company’s financial and economic strategy (monitoring of execution
and approval of OJSC MMK’s financial and economic plan and guidelines of fundraising and
Under the Federal Law on Joint Stock Companies, the Board of Directors is the key body safeguarding
shareholders’ rights, shaping and implementing the Company’s strategic development plan and
overseeing successful operating and financial results.
All of the Board’s actions in the reporting year were fully transparent for shareholders, and minutes of all
meetings are available to any shareholder on request.
The Board’s activity in 2011 was in full conformity with the approved programme, and implementation
was monitored on a regular basis. There were no unexecuted decisions for the reporting period.
General Information on MMK
Full Name of the Company:
in Russian: Открытое акционерное общество «Магнитогорский металлургический комбинат»;
in English: Open Joint Stock Company Magnitogorsk Iron & Steel Works.
Abbreviated Name of the Company:
in Russian: ОАО «ММК»;
in English: OJSC MMK.
State Registration Certificate
Certificate #0002 series GA (registration #186).
Date of state registration: 17.10.1992.
Certificate of Entry in the Uniform State Register of Legal Entities: series 74 # 000603904, OGRN
1027402166835, date of entry: August 12, 2002.
The Company’s location and postal address:
Ul. Kirova 93, Magnitogorsk, 455000, Chelyabinsk Region, Russia.
Tel: 24-72-92, 24-30-04, Fax: 24-73-09
Company Website:
Communications and Public Relations:
Phone: (3519) 24-03-02, fax: (3519) 24-85-54, е-mail:
Legal Status of OJSC MMK
Magnitogorsk Iron and Steel Works is an open joint stock company. According to the legislation of the
Russian Federation, a joint stock company is an organization whose authorized capital is divided into a
certain number of shares which certify rights of obligation of the company’s members (shareholders) in
relation to the company.
The shareholders are not responsible for the Company’s obligations and bear the risk of losses in
connection with the Company’s activity to the extent of their shares’ value.
The Company is a legal entity which owns separate property entered in the Company’s independent
balance sheet. The number of shareholders of the Company is not limited.
Countries in Which the Organization Conducts its Business
OJSC MMK runs its operations in the Russian Federation (Magnitogorsk, Belovo, Bakal, St. Petersburg and
Moscow) and the Republic of Turkey (Istanbul, Iskenderun). The Company’s key suppliers are located in
Russia and Kazakhstan. MMK sells its products to 70 countries worldwide. The key shipment destinations
include CIS, the Middle East, Europe, and Asia.