28 July ‘21

MMK improves production efficiency

Leadership in operational efficiency is one of the priority development areas for MMK under its updated strategy for the period up to 2025. For several years, the Company has been consistently and comprehensively working to reduce the consumption of material, fuel, energy, and other resources, as well as searching for reserves for further efficiency improvement. Production efficiency improvement programmes are implemented in all production and functional divisions of the Company. Due to this, between 2016 to 2020, an additional profit of RUB 27.1 billion was received compared to 2015, including over RUB 4.0 billion from low-cost and fast-return projects (baby capex).

The search for efficiency improvement reserves continued in 2021. For H1 2021, an economic result of more than RUB 2.4 billion was obtained. In particular, RUB 1 billion of additional profit was brought by measures to improve the efficiency of technological processes. The introduction of baby capex gave an economic result of RUB 468 million in the first half of the year. Energy-saving projects brought the company RUB 534 million and innovation projects brought over RUB 357 million.

Regarding the distribution of saved resources, the greatest economic effect was achieved by savings of fuel and energy resources (RUB 1.134 billion), raw and basic materials (RUB 528 million), as well as additional materials (RUB 367 million). In the second half of 2021, the Company is hoping to achieve an effect that is as good as in the first six months of this year. 

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