MMK-METIZ boosts presence in Russia
In 2017, MMK-METIZ’s share of the domestic market in Russia grew 2% year-on-year to 352 ths tonnes, while export sales grew 2.8% year-on-year. The largest Russian metalware producers that are part of metals and mining groups sold a total of approx. 2 mln tonnes of products in 2017, flat year-on-year. MMK-METIZ’s share of total sales in 2017 was 22%. General use steel and powder wire was the most popular product.
The company’s sales policy led to sales of 435.15 ths tonnes of finished products in 2017. The regional sales structure on the domestic market did not change significantly – the top consuming regions included the Central, Urals, and Volga federal districts. In total, domestic sales amounted to 352 ths tonnes in 2017, while export sales amounted to 83 ths tonnes with a 19% share of total sales. Kazakhstan remains the priority export market and accounted for 53% of export sales.
MMK METIZ’s revenue exceeded RUB 20 bln in 2017, up RUB 4 bln from 2016. The company paid taxes in full and on time, transferring more than RUB 1 bln to budgets of all levels and extra-budgetary funds, including RUB 92 mln to the budget of Magnitogorsk.
Currently, MMK-METIZ is successfully implementing a large-scale RUB 3.8 bln investment programme supported by MMK. In 2017, it commissioned state-of-the-art equipment for the production of М6-М12 bolts and nuts. It is adopting production of new DIN standard fasteners as part of an import substitution programme.
MMK-METIZ commissioned equipment for large fastener production, which will allow the Company to develop the production of high tense fasteners due to high-quality heat treatment of the fasteners, and to expand the production mix by adopting production of high-diameter galvanised fasteners.
In 2017, MMK-METIZ invested RUB 76 mln in industrial safety and work safety and RUB 25.7 mln in environmental protection. Another RUB 145 was invested in social programmes, while RUB 8.5 mln was spent on staff trainings.
Thanks to its strategy and support by MMK, MMK-METIZ met its goals in 2017. Tasks for the future include streamlining key business processes from production to negotiating with each counterparty to ensure even more efficient use of resources with maximum return.
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