12 November ‘18

MMK successfully explores promising market segments

Speaking in Moscow at the 21st 'Russian Metal Market' International Conference on 12 November, he noted that the metal market has already passed its saturation point, meaning that the period of extensive development is over. "In the future, in surplus supply conditions within a limited market, the most competitive companies will be those that invest now, not in expanding capacity, but in the growth of overall efficiency and competence in addressing market openings," said Sarana.

As an example of successful adaptation to the new market conditions, he cited MMK's strategy of focusing on consolidating promising niches in the market. One of the steps taken in this direction was the entry of Lysvensky Metallurgical Plant, Russia's only manufacturer of electo-galvanised steel and the country's first manufacturer of rolled products with polymer coating technology print, into MMK Group in 2017. This allowed MMK Group not only to become the largest producer of galvanised and coated steel in Russia, but also to significantly expand its product range.

Another area where MMK sees a niche is in rolled metal for the automotive industry. Today, MMK is the leading supplier of metal products for the Russian automotive industry: in 2017, the Company almost 530,000 tonnes of steel products to the automotive industry. In May 2018 in Tatarstan, MMK joined with Turkish partners to launch a new metals service centre 'MMK-Coşkunöz-Alabuga'. It focuses on the production of steel billets used in the production of car parts. The metal service centre can produce up to 60,000 tonnes per year.

In recent years, MMK has been successfully implementing a programme for the development of production and promotion of the MAGSTRONG brand, a range of high-strength and wear-resistant steel products. These import-substituting products have a wide range of applications and several superior qualities compared to their imported counterparts.

Finally, in the face of growing competition, companies are forced to seek out and enter new markets. With this aim, MMK created its own trading house, which celebrated its 10th birthday in November 2018. MMK Trading House promotes MMK Group's products to end users and reduces intermediary links, as well as time and delivery costs. MMK's total sales in Russia and Kazakhstan have already exceeded 1.5 million tonnes of metal per year and continue to grow.

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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