Economic impact of innovation proposals at MMK increases by 40%

During this time, innovators submitted a total of 3,150 proposals, of which more than 70% (2,210) were approved for implementation. These numbers indicate an increase in the quality of innovative proposals.

Among the implemented ideas, the leaders in economic efficiency were the steam-blower power plant shop, the blast furnace shop, the shop of mining and processing production, and the sheet-rolling shop No. 4. A significant part of the submitted proposals addressed the issues of labour protection and industrial safety, energy efficiency, and conservation of material and technical resources.

The total sum of awards paid out to innovators exceeded RUB 20 million.

The management of MMK views the sphere of innovation and invention as the foundation for the future development of personnel and competitive advantages at the enterprise. The company is constantly looking for ways to improve its system of innovation. In addition to holding regular competitions and training seminars, MMK is currently working to simplify the proposal submission process, including through the use of the mobile applications Evolution and Energy Management Platform. Staff engagement in innovation initiatives, as measured by the share of employees who submitted ideas among the total number of employees, continues to grow. In 2019, this figure for MMK as a whole increased by 20% compared to the first half of 2018. The most engaged personnel were those working in the divisions of the chief power engineer, where nearly 1 in 7 employees put forward a rationalization proposal in the first half of the year.

In the first half of last year, the economic impact of the rationalization initiatives at MMK amounted to RUB 269 million, and totalled RUB 453 million at the end of 2018.

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