MMK marks 92nd anniversary
Magnitogorsk Iron and Steel Works (MMK) is celebrating its anniversary today, 92 years from the day the Company’s first blast furnace produced its first pig iron on 1 February 1932. MMK has been one of the leading steelmakers in Russia and around the world ever since, thanks to its integration of state-of-the-art technologies and development of new product types.
One of the first enterprises of the industrialisation era, MMK embodies the unlimited power of hard work. The Company is more than a bright spot in history, however, as it continues to make a substantial contribution to the Russian economy to this day by meeting the needs of basic industries. Today, MMK is a state-of-the-art production facility that manufactures innovative, commercially successful metal products, including a predominant share of high-value-added products. Over the last 92 years, the Company has produced 683 million tonnes of pig iron, smelted 880 million tonnes of steel and manufactured 728 million tonnes of rolled products.
MMK is on its way to achieving the goals set out in its development strategy to 2025: to become the best supplier of rolled steel for the leading metal-consuming sectors of the Russian economy, to become an industry leader in terms of operational efficiency, and to adhere to the principles of sustainability and social responsibility. The Company currently holds leading positions in the supply of metal products for the pipe and automotive industries as well as the production of coated steel products and products for other metal-consuming sectors. MMK is focused on developing its customer relations, improving its operational and functional efficiency, digitalising its operations and making a bigger impact when it comes to various aspects of sustainability, including social issues and the environmental agenda.
The plant has been consistently reducing its impact on the environment, fulfilling its social obligations to employees and residents of the regions where it operates, and ensuring transparency in respect of corporate governance. In 2023, MMK became the first iron and steel producer in Russia to receive comprehensive environmental permits for all its facilities that have a negative impact on the environment. The Company’s environmental expenditures for 2017–2022 alone exceeded RUB 72 billion.
Despite ongoing challenges, MMK continues to retrofit and upgrade its equipment, a key element of which is the reconstruction of its coke production facility with the addition of coke plant No. 12. Once the new plant is brought online, the Company will be able to decommission outdated facilities used in coke production, which will reduce gross emissions of pollutants into the atmosphere by 11.35 thousand tonnes per year.
One factor driving MMK’s development in recent years has been its digital transformation. While the Company’s digital portfolio included more than 30 projects with a budget of over RUB 500 million in 2023, plans are in place to increase the digitalisation budget to RUB 800 million in 2024. The expected business impact will be about the same.
Throughout its history, MMK has paid significant attention to philanthropy and various social projects, spending approximately RUB 3.5 billion annually on such initiatives. The second phase of Attraction Park, a multifunctional space that includes facilities for entertainment, sports, events and recreation, was commissioned in 2023. Victor Rashnikov, Chairman of MMK’s Board of Directors, initiated this ambitious, landmark project for the city of Magnitogorsk and is its primary investor.
MMK continues to grow, expanding to new market niches and developing innovative, state-of-the-art products, as well as launching high-tech production facilities and strengthening the social aspects of its operations. In so doing, it makes an invaluable contribution to the socioeconomic development of Magnitogorsk and the entire Southern Urals.