09 July ‘18

MMK to share its innovation experience at Innoprom

The main theme of the event is digital technologies, therefore MMK has an important role to play in the exhibition as the leader in information technologies in the domestic iron and steel industry, and is devoted to its implementation of the concept Industry 4.0 within the company. MMK started the industrial operation of a unified corporate information system (CIS) in 2004. This was part of the strategic course to introduce the most up-to-date IT systems into the production and management processes of the company in order to reduce costs, increase business transparency, strengthen in-house corporation ties, and create new services for customers and employees.

Currently, MMK has embarked on a major modernisation of its CIS, which will enable the completion of the Industry 4.0 tasks via the integration of all the company’s information flows. This unified information system includes the management of production (continuous and discrete), inventories, repairs, purchases (including an electronic trading platform), finances, personnel (including payroll), projects, orders and sales. Oracle is MMK’s strategic partner in the implementation of this project. In the course of the project, MMK will modernise its corporate information system to the latest version of Oracle E-Business Suite R12 and expand the ERP-system to other companies in the Group, which will almost double the coverage of employees working in a single information field.

Among the Industry 4.0 projects already implemented at MMK, there is the "Energy Management Platform" - an IT product for managing business processes in energy efficient ways; and the "Mobile Maintenance and Repairs" project, a software for the management of repairs. At the moment, more than 30 projects from Industry 4.0 are under implementation, which is expected to save at least RUB 400 million.

MMK's development strategy until 2025 involves the large-scale modernisation of the first production stage with the commissioning of new high-tech industrial facilities: a sinter plant, a coke oven battery and a blast furnace. Automation technologies and management models will also be introduced according to the digital production parameters of the Industry 4.0 concept.

A model of the construction of sinter plant No. 5, which is expected to launch in 2019, is showcased at MMK’s stand at Innoprom. This high-tech production complex will be equipped with 22 modern environmental facilities in line with the best currently available technologies. Its launch will enable MMK to decommission sinter plant No. 4, which will reduce dust emissions by 2,075 tonnes / year, and sulphur dioxide by 3,500 tonnes / year. The volume of metallurgical waste (slag) discharged into the sludge dump No. 2 will be reduced by 13,750 tonnes / year. An installation for the recycling of slag collected from a sulphur collection unit will be constructed to produce the commercial gypsum.

High-strength and wear-resistant welded grades of MAGSTRONG steel produced at MMK plant are also on display at MMK’s stand at Innoprom. This steel is on par with international peers in its key characteristics. Its mechanical properties provide high resistance to abrasive wear and toughness, good weldability and machinability, and therefore increase the service life of products made from this metal-roll in comparison with traditionally used materials.

The 9th International Industrial Exhibition Innoprom 2018 is taking place from 9 to 12 July in the international exhibition centre Yekaterinburg EXPO. Traditionally, the main topic of the forum is the latest technological developments in the industry and topical issues for development of the innovation market in Russia. In 2017, there were more than 160 events open to visitors at Innoprom. 600 industrial companies from 20 countries presented their products.

About MMK

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 complex 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 2017, the company produced 12.9 million tonnes of crude steel and 11.6 million tonnes of commercial steel products. MMK Group had sales in 2017 of USD 7,546 million and EBITDA of USD 2,032 million.

Investor contacts:

Andrey Serov
tel.: +7 (3519) 24-52-97
E-mail: serov.ae@mmk.ru

Media contacts:

Dmitry Kuchumov
tel.: +7 (499) 238-26-13
E-mail: kuchumov.do@mmk.ru

Dmitry Bulin
tel.: +7 (499) 238-26-13
E-mail: bulin.dn@mmk.ru

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