MMK's Industrial Park will get new plant
Magnitogorsk Iron and Steel Works (MMK), MMK-METIZ, MMK-INDUSTRIAL PARK and Tervingo signed a cooperation agreement on the construction project during the international industrial exhibition Metal-Expo 2019. The agreement was signed by MMK CEO Pavel Shilyaev, Director of MMK-METIZ Alexander Mukhin, Director of MMK Industrial Park Vladimir Dremov, and Director of Tervingo Mikhail Ushakov.
The agreement provides for joint work to create a production plant for high-strength steel wire products, which are used as a reinforcing element in the construction of tires and other technological products. The project is planned to be implemented on the territory of MMK Industrial Park in Magnitogorsk.
The total investment cost of the project is estimated at RUB 8 billion. The size of the required financial resources is reduced to RUB 2.5 billion thanks to the synergistic effect of the parties involved, including the expertise that each side brings to the table and the value of their existing assets.
The new plant is scheduled to launch in Q4 2020, which will create 250 new jobs. Its production volume will amount to up to 35,000 tonnes per year of high-tech products with high added value.
The buyers of these products will include both Russian and European tire manufacturers, as well as consumers specializing in the production of various reinforced polymer and rubber products.
MMK Industrial Park is a business-ready asset complex with an area of 65 hectares. With a comprehensive engineering infrastructure and a developed rail network, it boasts all the necessary conditions for the quick launch of virtually any new production process. The Park has been accredited by the Ministry for Industry and Trade, which enables its investors to benefit from the tax relief system. At present, 26 residents are engaged in production activities at the site.
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.