MMK-METIZ implements large-scale investment programme of more than RUB 5 billion

This announcement was made by Konstantin Kuranov, Senior Manager of the Department for Advanced Development and Technical Re-equipment of MMK-METIZ, at the 8th all-Russian metalware development conference "Wire-Fasteners 2019" in Moscow. Kuranov noted that in 2017, the Ministry of Economic Development of the Chelyabinsk Region and MMK-METIZ signed a contract to implement the project "Modernization of Hardware Production," which aims to produce RUB 39 billion worth of goods by 2025. The effect for MMK-METIZ from the application of tax benefits will reach RUB 423 million.

The investment programme is planned for 2017-2020. It includes the concentration of production on one site (currently there are two) in order to increase the efficiency of space use and significantly reduce energy consumption. Within two and a half years, 120 units of equipment have already been transferred. Production at the calibration site is scheduled to end in Q4 2019. After the implementation of the programme, MMK-METIZ plans to develop energy infrastructure with the introduction of modern energy-efficient technologies and equipment. The development programme also includes the commissioning of 75 units of new high-tech equipment for the production of fasteners, wire and ropes, as well as calibrated steel.

In particular, in 2017-2018 MMK-METIZ mastered the production of bolts and nuts according to DIN M6-M12 standards thanks to the commissioning of equipment manufactured in Taiwan. The Company also purchased a quenching and tempering unit made by KOHNLE for the production of high-strength fasteners, as well as a galvanizing line from Tesar. The introduction of this equipment allowed MMK-METIZ to ensure the high-quality heat treatment of fasteners, including high-strength fasteners for bridge construction, and to expand its assortment by developing the production of large-diameter galvanized fasteners. The total amount of investment in the project amounted to more than RUB 400 million.

In 2018, MMK-METIZ implemented an import-substitution project: the Company put into operation a new complex for the production of self-tapping screws, which increased their production volume and expanded the assortment by increasing the maximum length of screws, as well as making possible the production of screws for window profiles (including drill-point screws), self-tapping screws with a hemispherical head and pressure pad, universal wood screws, and nail-screws for plastic dowels. In 2018-2019, MMK-METIZ launched a complex for the production of high-carbon wire and steel ropes, which allowed the plant to reach a new level of quality and master new types of ropes, including eight-row and non-twisting ropes as well as those with plastically compressed strands. The total amount of investment in the project amounted to more than RUB 1.6 billion.

This year, MMK-METIZ is implementing another major project: the commissioning of a complex from the German company EJP for the production of bunt and bar calibrated rolled products with a capacity of 36,000 tonnes per year. The complex consists of two high-performance automatic lines capable of performing several operations, from scale removal to packaging. The total amount of investment in the project amounted to more than RUB 600 million. The project allows MMK-METIZ to reach a new level of production and guarantee the high quality of its bunt and bar calibrated rolled products.

In Q4 2019, projects are underway to expand the production of zinc-coated products, specifically wires and fasteners. For this purpose, MMK-METIZ purchased a continuous hot-dip galvanizing wire unit and is reconstructing its existing FIB hot-dip galvanizing line. Towards that end, MMK-METIZ will put into operation an automatic galvanizing line for M6-M12 fasteners that will create a protective zinc coating in order to increase their corrosion resistance and improve their market quality. The total amount of investment in the two projects will total RUB 365 million.

In 2020, MMK-METIZ plans to put into operation four more production complexes. Bell furnaces for spheroidizing annealing of calibrated rolled products will be installed in Q1 2020. Their launch will contribute to import substitution and will increase the production of automotive components in Russia.

In the future, the MMK-METIZ will install a complex of rewinding machines for forming wire coils in accordance with customer demands, and a complex of cold-shrink and thread-rolling machines for the production of M16-M24 machine-building bolts, which will allow the Company to replace worn-out equipment and increase productivity by 50-70%.

Another project scheduled for 2020 is the commissioning of a hot-shrink machine for the production of railway bolts and track screws, including the Fosslo type for high-speed highways. The total amount of investment in these projects will exceed RUB 1 billion.

The 8th all-Russian conference "Wire-Fasteners 2019" took place last week in Moscow. The event is organized by the Prommetiz Association and Metal Supply and Sales magazine. The conference was attended by about 130 representatives of manufacturers and suppliers of hardware products. The speakers raised a wide range of issues related to the current situation in the market of fasteners and discussed trends in the hardware industry, as well as voicing their current predictions and forecasts. Participating companies also presented new products and significant investment programs. Among the main topics of the conference were production and consumption of hardware products in Russia and abroad, requirements for hardware products from consumers in various industries, the interaction of hardware plants with suppliers of raw materials, metal trade, and opportunities for the development of SMC.

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 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.

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