Local community development

MMK is actively engaged in educational work with young people. Every year, students of Nosov Magnitogorsk State Technical University undergo introductory, on-site and pre-graduation internships at MMK’s units. Each year we hire a total of between five and six hundred graduates and young people who have completed their military service in Russia. The Union of Young Metallurgists plays a central role in onboarding young talents newly employed by MMK, by creating an environment for comprehensive development of young talents, unlocking and applying their potential towards professional growth as well as in the social, cultural and sports life. We contribute to the development of educational programmes and initiatives for schoolchildren. We are also an industrial partner and general sponsor of the Quantorium children’s technology park and develop joint educational programmes, including those incorporating new technologies (VR, 3D modelling, 3D printing, etc.).

The Metallurg ice hockey club is an important part of the history and culture for the city’s residents and employees of MMK. The Metallurg hockey team is one of the strongest teams in Russia and Europe. The team has won eight medals: Metallurg won the championship three times (1999, 2001, 2007), won silver twice (1998, 2004) and was a bronze medalist at the championship of Russia three times (2000, 2002, 2006). Metalurg Ice Hockey Club has led the Kontinental Hockey League for five seasons and its players are often called on to play for the Russian national team. The Metallurg Hockey Club has traditionally worked closely with MMK, providing the opportunity for the Company’s employees to purchase subsidised season tickets and tickets.

Since 2018, MMK has had in place an industrial tourism development programme. People can visit the Company’s site in Magnitogorsk as part of the tour. The programme works towards the goals of the Strategy for Tourism Development in the Russian Federation to 2020 and the Social and Economic Development Strategy for Magnitogorsk to 2035, remodelling the approach to organising industrial site tours, boosting Magnitogorsk’s appeal for tourists and promoting the profession of metallurgist.

We currently offer six tour itineraries, including two launched in 2020. Catering for children and adults alike, the itineraries include visits to PJSC MMK’s production site and museum. Along with the production site tours, we also offer a virtual itinerary that was developed in 2020. Overall, in 2020, the Company managed to conduct 183 tours for 1,793 visitors.

The Company strives to provide comfortable living conditions for the city’s residents, most of them being its employees and their family members. MMK actively supports improvements to the city’s infrastructure through renovating buildings and roads, creating park areas, and supporting greening and lighting projects. MMK aligns its urban planning activities with the needs of the administration of Magnitogorsk. We engage with local communities and authorities of Magnitogorsk in developing our environmental programmes and targets. The Company holds monthly meetings with the city administration to draft a roadmap for improving the local environmental situation. We also solicit the opinions of local communities via public hearings.

In 2020, we continued our Prityazhenie urban development project in Magnitogorsk. This is a unique project for the comprehensive development of an area of the city, which will comprise a park, an educational facility with a museum, an educational centre, an incubator for social projects, a sports and events cluster and a healthcare centre. Launched in 2019, the project will span a huge area totalling over 400 hectares, with the park covering more than 100 hectares. The plans for the Prityazhenie project are included in Magnitogorsk’s development strategy for 2035. The project’s concept was developed taking into account the needs of the city and the views of its residents and authorities. The voices of local people, activists and authorities are listened to at every single stage of the project. The project will fundamentally improve the standard of living in the city, create new jobs and boost tax revenues. It will also open up a host of new opportunities for recreation, sports, education and entertainment both for MMK employees and for other residents of Magnitogorsk.

Support for SMEs is an important strategic priority for MMK, designed to make Magnitogorsk less reliant on its backbone enterprise. The Company focuses on improving the social and economic elements in its host city and creating a favourable and innovative environment for SMEs in line with best business practices. To achieve this, in 2016, the Company set up an industrial park in Magnitogorsk and launched a dedicated subsidiary, LLC MMK-INDUSTRIAL PARK (the «Park»), to operate it. The Park offers all the tools necessary for the successful launching of startups. By building and developing the Park, MMK has been able to make a significant contribution to addressing a number of the most complex local social and economic challenges:

— Diversification of Magnitogorsk’s economy
— Support for small and medium businesses
— New job creation and reducing the rate of unemployment

The Park, which turns five in August 2021, has been growing rapidly over the years since its foundation and is today a leading production site accredited at the federal level. The site currently hosts 33 tenants4, representing ferrous and non-ferrous metallurgy, machine building, metalworking, chemicals, petrochemicals, wood processing and other industries. Since 2016, the Park has created over 900 highly productive jobs, 340 of them in 2020, and continues to add new jobs every year by attracting new tenants and driving the expansion of existing tenants’ operations. Investments in 2020 totalled about $4.1 million. Every rouble invested by MMK into the Park’s infrastructure is matched by $0.11— 0.14 raised by its tenants, and this industry average ratio has remained stable over the last five years.