MMK-METIZ opens new production facility with support of Industrial Development Fund
A new facility producing import-substituting fasteners and wire has gone into operation at MMK-METIZ, part of MMK Group. Total investment in the project amounted to RUB 1.5 billion, including RUB 500 million in the form of a preferential loan provided by the federal Industrial Development Fund (IDF) for the purchase of high-tech equipment.
The facility will produce over 105 thousand tonnes per year of reinforcement, galvanised and welding wire, as well as 4.2 thousand tonnes per year of machine and rail nuts. Only Russian raw materials will be used in production.
MMK-METIZ’s new plant aims to meet the growing demand for hardware and to reduce the volume of imports in the Russian fastener market. According to the company’s estimates, 50% of supplies of alloy welding wire and machine nuts were previously imported.
The IDF loan was used to purchase state-of-the-art equipment such as drawing machines, rewinding machines, wire heat treatment and galvanising lines, reinforcement wire production lines, nut-threading machines and furnace installations. The facility created 110 new high-performance jobs.
“Our main strategic goal is to create a high-tech complex that can produce the latest in metalware. We turned to the Industrial Development Fund for support since a number of manufacturers and business leaders have spoken highly of the Fund with respect to its terms and conditions as well as its investment management. And now we can offer our customers new, high-quality hardware,” said Sergey Dubovsky, Director of MMK-METIZ.
Customers for the company’s new metalware will include major industrial enterprises, such as MMK.
Reinforcement wire is widely used in the construction industry for the production of reinforced concrete items, frames and decks; welding wire is used by steelmakers for the automatic welding of oil and gas pipe joints; and galvanised wire is used for the production of steel ropes, mesh and fences as well as armoured cable. Rail nuts are used in clamps on track superstructure, and machine nuts are used in every industry to fasten various structures.