The Magnitogorsk Iron and Steel Works’ (MMK) strategy for the coming years is further investment in the modernization of equipment in order to improve efficiency and reduce the environmental burden, according to MMK’s Head of Procurement and Marketing Evgeny Sarana.
Speaking in Moscow at the 21st “Russian Metal Market” International Conference on November 12, he noted that the metal market had already passed its saturation point, meaning that the period of extensive development was over.
“In the future, in surplus supply conditions within a limited market, the most competitive companies will be those that invest now, not in expanding capacity, but in the growth of overall efficiency and competence in addressing market openings,” said Sarana.
As an example of successful adaptation to the new market conditions, he cited MMK’s strategy of focusing on consolidating promising niches in the market. One of the steps taken in this direction was the entry of Lysvensky Metallurgical Plant, Russia’s only manufacturer of electro-galvanized steel and the country’s first manufacturer of rolled products with polymer coating technology print, into MMK Group in 2017. This allowed MMK Group not only to become the largest producer of galvanized and coated steel in Russia, but also to significantly expand its product range.
Another area where MMK sees a niche is in rolled metal for the automotive industry. Today MMK is the leading supplier of metal products for the Russian automotive industry: in 2017 the company delivered almost 530,000 tons of steel products to the automotive industry. In May in Tatarstan MMK joined the Turkish partners to launch a new metals service center “MMK-Coşkunöz-Alabuga”. It focuses on the production of steel billets used in the production of car parts. The metal service center can produce up to 60,000 tons per year.
In recent years MMK has been successfully implementing a program for the development of production and promotion of the MAGSTRONG brand, a range of high-strength and wear-resistant steel products. These import-substituting products have a wide range of applications and several superior qualities compared to their imported counterparts.
Finally, in the face of growing competition, companies are forced to seek out and enter new markets. With this aim, MMK created its own trading house, which celebrated its 10th birthday in November. MMK Trading House promotes MMK Group’s products to end-users and reduces intermediary links, as well as time and delivery costs. MMK’s total sales in Russia and Kazakhstan have already exceeded 1.5 million tons of metal per year and continue to grow. (MMK/Ukrainian metal)