Innovation management

MMK employs best technology and innovation scouting practices. Thanks to accessibility of knowledge through online platforms and reduced language barriers, it is now easier and less expensive to find the best technological solutions, equipment or software than it was five years ago.

of the innovation agenda

Market leadership goes beyond commodity assets and vertical integration of operations – from mining to selling household appliances and metal structures. It also requires a high level of innovation across all operations and business processes.

Innovation management

Steps necessary to progress from an innovative idea to the terms of reference and the successful delivery of an innovative project have been thoroughly studied and methodologically verified
Innovative projects or products have to reach the break-even point within three years, be practical or offer the Company a high long-term value.
There can be an element of uncertainty around the delivery against all of the expected outcomes. And there can be a certain level of risk of receiving little or no return on investment.
A win-win result can be achieved through several different strategies of engaging with third party contractors.
There are long established and updated incentives for employees aimed at encouraging innovation
Budgets for R&D agreements, baby-capex and digitalisation projects are allocated to individual cost centres.

in R&D and Industry 4

The MMK Group's innovation strategy is focused on the production of metal structures and miscellaneous products and delivering MMK Industry 4 projects powered by machine learning, computer vision, industrial exoskeletons, big data analytics, industrial internet of things (IIoT), additive technologies, mathematical modelling, automation, robotisation and digitalisation of production processes.

RUB 600 million investment:

Rolled products and end-to-end technologies
High-tech production and projects implemented as part of federal targeted programmes
Industry 4.0
Metallurgical production
Pavel Shilyaev
The deployment of digital technologies across MMK’s operations will become the Company’s key development driver in the near future. Clearly, the key to the success of any strategy is the people. The extensive hands-on expertise of our teams who can embrace and harness digital technologies in day-to-day operations will help the Company unlock its potential to improve efficiency and decision-making at all governance levels and increase the effectiveness of all business processes

Pavel Shilyaev


Focus on economic value and staff health

Driven by the need to adopt lean practices and increase labour productivity, we are open to new knowledge and competencies and prepared to quickly embrace promising innovative solutions to improve both technological and business processes – on site or off-site. The key enablers of innovation at MMK are the willingness and enthusiasm of the management team to always strive for more and their commitment to the established principle of challenging themselves to set a new record only to beat it again.
Andrey Eremin
We select projects for MMK’s Digitalisation Strategy 2025 following comprehensive assessment, checking whether the project is aligned with the Company’s strategy and meets its RoI requirements and taking into account the balance of risk and other important factors. As a result, the final portfolio has a higher expected rate of return compared to MMK’s standard profitability levels

Andrey Eremin

MMK Director for Economics

Efficiency drive and the spirit of invention

MMK’s management team believes that the drive for efficiency and invention is key to staff development and the Company’s competitive edge. We are constantly seeking ways to improve our efficiency drive efforts. These include regular competitions and training workshops along with the work to streamline the procedure for submitting suggestions, including through the Evolution and Energy Management Platform mobile apps. In 2020, 4,984 suggestions were submitted to expert commissions, with 75% approved for implementation. The economic benefits from work improvement suggestions implemented at Magnitogorsk Iron & Steel Works in 2020 exceeded RUB 600 million. Most suggestions addressed occupational health and safety, energy efficiency and lean use of materials and equipment.

Andrey Kartunov
It is no secret that any invention, even the most advanced one, is useless unless it has practical application. The best result can be achieved only when high technology meets practical purpose. This is the reason why we run conferences share experience sharing, signs cooperation agreements with universities, R&D centres and development institutions. We invite you to Magnitogorsk to see our production facilities

Andrey Kartunov

Head of MMK R&D Centre


Exhibitions Not only we tap into best technology and innovation scouting practices, we also showcase our innovative solutions at various nationwide and regional events. At INNOPROM 2021, MMK presented its proprietary technology for manufacturing 0H9 grade rolled sheet cryogenic steel, which is widely used in production, storage, and transportation of liquefied and compressed natural gas. At Archimedes 2021, we exhibited four patented inventions and a utility model. The Company was awarded a gold medal for its innovative method to produce cryogenic structural steel. Cryogenic structural rolled steel sheets combine such features as high strength, sufficient ductility and toughness at temperatures as low as minus 196°C. Another MMK’s innovation – a solution for manufacturing high-strength cold- resistant low-alloy rolled steel – won a silver medal. High-strength low-alloyed rolled steel sheets with increased cold resistance are used in transport and heavy engineering industries.

Sergey Denisov
MMK does its best to think and act proactively. Over the last few years, we have developed more than 50 steel grades, including 20 grades on request. This enables MMK to gradually move away from supply of mass products to customised innovative solutions with high added value

Sergey Denisov

Chief Specialist of the development group at MMK R&D Centre

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