MMK’s economic effect of innovation increases by 20%

It is estimated that a total cost advantage from the introduction of these ideas will exceed RUB 600 million by the end of 2017.    

In 2016, expert committees from the structural divisions of the plant considered 6,172 innovative proposals, recognising about half of them as rationalising ones. As a result, 2,500 innovations were introduced resulting in a cost advantage of RUB 584.5 million. This is 24.6% more than in 2015.

MMK’s management recognises rationalisation and innovation as the basis of staff development and the competitive advantage of the enterprise. Annual competitions for the “Best Rationalisation Idea” and the “Best Rationaliser” gather a large number of participants. Regular seminars are held to exchange work rationalisation experience, with the aim of creating a cohesive team of innovators united by one idea: to solve production problems quickly and creatively.

MMK is focused on introduction of modern IT technologies into the rationalisation process in order to reduce the amount of time between the presentation of the idea and its implementation. In 2016, to attract workers to the rationalisation process, a mobile app designed to gather ideas was developed for Android and iOS platforms. ‘Evolution’ was the first innovative IT project of its kind implemented at a metallurgical enterprise. This year the Evolution app will be integrated into the computer based energy management platform, which will increase the efficiency of the assessment and implementation of valuable ideas

The inventions and innovative developments of MMK’s employees have received numerous awards. For example, at the recent Archimedes Moscow International Salon of Inventions and Innovative Technologies, MMK received gold medals for the development of the original trade mark “MAGSTRONG”, under which a range of structural high strength steel grades is manufactured. In addition, MMK won the diploma and the regional cup for active work on the development of innovation and rationalisation.

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 2016, the company produced 12.5 million tonnes of crude steel and 11.6 million tonnes of commercial steel products. MMK Group had sales in 2016 of USD 5,630 million and EBITDA of USD 1,956 million.

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