MMK Launches Unique Logistics Centre in Togliatti Special Economic Zone
The production and logistics centre (PLC) of Magnitogorsk Iron & Steel Works (MMK), one of the world's largest steel producers and a leading ferrous metallurgy company in Russia, is set to launch on the territory of the Togliatti Special Economic Zone (Togliatti SEZ). This is the first facility of its kind in Russia, servicing delivery of metal products to the domestic automotive industry. Dmitry Azarov, governor of the Samara region, was given a tour of the new centre.
MMK will deliver and store metal produced in Magnitogorsk at warehouses in the Togliatti SEZ for shipment to the country's automotive plants. At present, MMK's PLC is completing commissioning work and filling the warehouse with rolled metal products.
Magnitogorsk Iron & Steel Works and the Samara region signed an agreement on the construction of an industrial and logistics centre in the Togliatti SEZ in June 2019 at the St Petersburg International Economic Forum.
The PLC is the largest investment project in the Togliatti economic zone, and has already begun to play an important role in its development. MMK’s project has become a new driver of growth in the area, as it is profitable for many manufacturing companies to be located in close proximity to a metal supplier. The special economic zone has already concluded an agreement with a new investor, who will be working in conjunction with MMK. Experts expect a surge of interest in the Togliatti SEZ from investors who work with metal, engage in billeting, cutting and manufacturing of various kinds of metal products.
"The centre will receive products from Magnitogorsk Iron & Steel Works and distribute them to our customers: automotive plants that are located in Western and Central Russia, including AVTOVAZ, in close proximity to the new PLC," said Andrey Shvetsov, Head of MMK-PLC-Togliatti LLC. "Metal and storage locations have unique QR codes to enable customers to track their orders online."
The head of the Samara region Dmitry Azarov underlined the scale and importance of the project not only for Togliatti and its developed industry, but for the Samara and Volga regions as a whole.
"Of course, it means new jobs and decent wages for the people who will work here. It is also a tremendous impetus for the development of the region's economy, first and foremost, the Special Economic Zone. Having created the conditions to implement this project, we have now made a commitment to build a railway line and completed another investment project, which has already started operating," Azarov said.