OJSC MMK-Metiz, a part of PJSC Magnitogorsk Iron and Steel Works (MMK) Group, held its annual general meeting of shareholders (AGM).
In 2017 MMK-Metiz’s share of the domestic market in Russia grew by 2% YoY, to 352 thousand tons, while export sales grew by 2.8%. The largest Russian metal wares producers that are part of metals and mining groups sold a total of approximately 2 million tons of products in 2017, flat year-on-year. MMK-Metiz’s share of total sales in 2017 was 22%. General use steel and powder wire was the most popular product.
The company’s sales policy led to sales of 435.15 thousand tons of finished products in 2017. The regional sales structure on the domestic market did not change significantly – the top consuming regions included the Central, Urals, and Volga federal districts. In total, domestic sales amounted to 352 thousand tons in 2017, while export sales amounted to 83 thousand tons with a 19% share of total sales. Kazakhstan remains the priority export market and accounted for 53% of export sales.
MMK Metiz’s revenue exceeded 20 billion rubles in 2017, up by 4 billion rubles from 2016. The company paid taxes in full and on time, transferring more than 1 billion rubles to budgets of all levels and extra-budgetary funds, including 92 million rubles to the budget of Magnitogorsk.
Currently, MMK-Metiz is successfully implementing a large-scale 3.8billion rubles investment program supported by MMK. In 2017 it commissioned state-of-the-art equipment for the production of М6-М12 bolts and nuts. It is adopting production of new DIN standard fasteners as part of an import substitution program.
MMK-Metiz commissioned equipment for large fastener production, which would allow the company to develop the production of high tense fasteners due to high-quality heat treatment of the fasteners, and to expand the production mix by adopting production of high-diameter galvanized fasteners.
In 2017 MMK-Metiz invested 76 million rubles in industrial safety and work safety and 25.7 million rubles in environmental protection. 145 million rubles were invested in social programs, while 8.5 million was spent on staff trainings.
Thanks to its strategy and support by MMK, MMK-Metiz met its goals in 2017. Tasks for the future include streamlining key business processes from production to negotiating with each counterparty to ensure even more efficient use of resources with maximum return. (MMK/Ukrainian metal)