MMK increases sales for its SteelArt polymer-coated products
These products consist of a metal base with a three-layer polymer coating, which accurately imitates the look and feel of natural materials such as stone, wood, brick and others, as well as being much cheaper and easier to install. The product has a number of advantages relating to its base layer. These include increased corrosion resistance, significant resistance to mechanical damage, it provides a wider variety of choice of base metals, it is highly environmentally friendly, and preserves its decorative properties. Such products are in line with the best international standards both in terms of quality and of environmental performance. SteelArt products have a wide variety of uses. Their applications include exterior and interior finishings of buildings and of rooms, decoration for household appliances and much more.
The construction of the polymer-coating unit No. 5 has been endorsed by the Ministry of Industry and Trade which has included the project among other new investment projects it subsidises. In addition, the project was included in the Ministry's import substitution programme. Russian Prime Minister Dmitry Medvedev took part in the unit's launch ceremony in 2016.
"The launch of the new SteelArt production unit represented a significant step forward for the modernisation of existing production," said Sergey Dubovsky, Director of the Lysvensky Metallurgical Plant. "This new type of product will enable us to expand our sales territory and to find new market segments. In fact, our products are shipped throughout Russia. Scientific research has shown SteelArt products to have a lifetime of at least 25 years which is applicable to both products with exterior uses and products with interior uses, making them a more durable and cheaper alternative to plastic and natural materials which they imitate. Such products are relatively new to the Russian market, but we have noticed that interest in these products is growing."
SteelArt products' sales are growing proportionally to increasing market interest. In 2017, the Lysvensky Metallurgical Plant produced 7,700 tonnes of these products, and in 2018, the polymer-coating unit No. 5 produced a total of 50,000 tonnes, of which over 12,000 tonnes were SteelArt products.
About MMK Lysvensky Metallurgical Plant (LMP)
LMP is the only manufacturer of electrolytically galvanised steel with protective coatings in Russia. The Company merged into MMK Group at the end of 2017. The site's production capacity is 350,000 tonnes per year for cold-rolled polymer-coated products, and 390,000 tonnes for galvanised steel. LMP produces a wide variety of polymer-coated products. Its products vary from the economy range with low-cost temporary products and base layers for the production of roofing materials and profiling, to the premium range with high-quality products for the manufacturing of premium roofing, interior decoration, as well as for the production of decorative casing for household appliances.
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 unit 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 2018, the company produced 12.7 mln tonnes of crude steel and 11.7 mln tonnes of commercial steel products. MMK Group had sales in 2018 of USD 8,214 mln and EBITDA of USD 2,418 mln.
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