07 October ‘22

MMK Partners with Russian Suppliers on Import Substitution

Magnitogorsk Iron and Steel Works (MMK) is actively working with Russian suppliers to substitute imported chemicals used in rolling production with domestic analogues. This makes it possible to ensure stable production and technological independence in the manufacturing of finished products.

While substitution of the required chemical materials takes time, Russian suppliers are already successfully developing methods to supply MMK with specific chemical products, thanks to their modern production equipment and qualified personnel. This has enabled the Company to replace significant volumes of imported chemicals that have since become unavailable.

MMK has fully transitioned to the use of dressing liquids from domestic suppliers in the production of cold-rolled and hot-dip galvanized steel, without impacting the quality of the finished products.

The Company is also at various stages of testing and batch application of rolling oils produced by Russian suppliers at its cold-rolling shops. It anticipates that implementing domestically-produced oils will deliver an economic benefit of more than RUB 100 rubles per tonne of rolled products.

In addition, in its hot-dip galvanized steel production chain, MMK has already introduced or is at various stages of testing domestic analogues of three degreasing products, a defoamer, four passivators, and two products to improve the cold forging process of hot-dip galvanized steel when it is being processed by the customer. The total expected economic benefit from the introduction of these products will amount to approximately RUB 500 per tonne.

MMK is carrying out pilot testing of domestic degreasing products and products for the formation of conversion coating in its production of rolled products with polymer coating, which will deliver an economic benefit of about RUB 30 per tonne.

Domestic anti-corrosion oils have been approved by automotive industry enterprises, which has enabled MMK to retain loyal customers and ensure the necessary corrosion resistance of finished rolled metal products.

In addition, a number of rolled metal divisions at MMK are carrying out pilot testing of Russian-made marking paints. These should guarantee the identification and traceability of MMK's rolled metal products and offer a level of quality that is on par with that of previously imported materials.

Partnering with domestic companies on the supply of chemical materials enables MMK to ensure that its production processes go on uninterrupted, as well as enabling the Company to continue to deliver high-quality steel products while fully preserving all warranty obligations to its customers.

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