02 August ‘21

MMK approves changes to organisational structure as part of large-scale investment programme implementation

Pursuant to the decision of MMK’s Board of Directors, by an order of the Company's CEO dated July 30, 2021, a new position has been introduced to MMK Group’s management structure: Director of Capital Construction. Alexander Mukhin has been appointed to the position. The Directorate of Capital Construction reports directly to MMK’s Deputy General Director for Production.

Pavel Shilyaev, CEO of MMK, noted: "MMK's new projects, which are under the constant personal supervision of Victor Rashnikov, Chairman of MMK's Board of Directors, will play a crucial role in achieving the Company's strategic goals in technological development, improving production efficiency, and environmental and industrial safety. Today's appointment of Alexander Mukhin to the position of Director of Capital Construction is an important corporate decision and another step towards the most efficient implementation of our plans for the comprehensive development of the Company."

Among the largest projects currently being implemented at MMK is the comprehensive reconstruction of coke production facilities, which involves the construction of coke oven battery complex No. 12, the reconstruction of the chemical products recovery and processing workshop, and the construction of a biochemical plant. The capacity of coke oven battery No. 12 will be 2.5 million tonnes of dry coke per year and the cost of the project will be roughly RUB 67 billion. The first stage of the complex will be commissioned in 2022, while the launch of the second stage is scheduled for 2023. Thanks to the launch of coke oven battery No. 12, five obsolete batteries will be phased out of operation, and the consumption of coal concentrate and natural gas will also decrease. Moreover, the modernisation of production will reduce gross emissions by 11.35 thousand tonnes per year.

Another one of MMK's strategically important projects is the construction of the blast furnace complex No. 11, which should be comissioned in 2024. The working volume of the new blast furnace will be 3.8 thousand cubic metres and its capacity will be 3.7 million tonnes of pig iron per year. It will be constructed using the best available technologies. The construction cost is estimated at RUB 61.3 billion. In the new blast furnace's complex, a recycling steam power plant with a capacity of 100 MW will be built at a cost of RUB 21.6 billion.

Among MMK’s major investment projects is the construction of a new oxygen unit worth about RUB 20 billion, as well as several important environmental facilities – a complex of gas treatment units for capturing fugitive (secondary) emissions from the oxygen converter department of the oxygen converter shop and a gas cleaning unit for electric arc furnace No. 1, with a capacity of 2,400 thousand m3/h.

These and other capital construction projects are aimed both at creating the most modern production facilities on the level of world-leading technologies, and at radically improving the environmental friendliness of production and reducing the plant’s carbon footprint within the framework of MMK's path to carbon neutrality.

FOR REFERENCE: Prior to his appointment as MMK’s Director of Capital Construction, Alexander Mukhin held the position of Director of Magnitogorsk Hardware and Calibration Plant MMK-METIZ – an MMK subsidiary. In this position, he efficiently managed the technical re-equipment of the enterprise and the implementation of large investment projects aimed at modernising production, reducing the enterprise’s environmental impact and ensuring production safety. 

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