Magnitogorsk Iron and Steel Works’ (MMK) Industrial Park signed a cooperation agreement with the Chelyabinsk Region Investment Development Agency and Metallurgic Deoxidizers Plant. The parties have agreed to cooperate on a project to construct a plant in Magnitogorsk to produce deoxidizers for steel, located in MMK Industrial Park. Investment in the first stage of the new production will amount to 70 million rubles and will ensure the creation of 30 new jobs.
The new plant is expected to be launched in Q1 2019. Its products will be unique in many respects and will be designed for primary deoxidization of metal from steel-making units, at the metal finishing plants and at the ladle furnace units. The production capacity will be up to 10,000 tons of deoxidizers per year. The geographical distribution will cover both the domestic market and export destinations such as Europe, Asia, and CIS.
The agreement was signed by Vladimir Dremov, director at MMK Industrial Park, Alexey Bobov, director at the Chelyabinsk Region Investment Development Agency, and Evgeny Zherdev, director at Metallurgic Deoxidizers Plant, at the 24th international industrial exhibition Metal-Expo.
The subsidiary company of Metallurgic Deoxidizers Plant, “Trade House TMZ”, has been producing and supplying deoxidizers to the steel market in Russia, CIS and Europe since 2015. The company’s know-how is at the heart of deoxidizer production. The enterprise also includes engineering section and a Research & Development center.
MMK Industrial Park is a business-ready asset complex with an area of 65 hectares. With a comprehensive engineering infrastructure and a developed rail network, it boasts the necessary conditions for the quick launch of virtually any new production process. The park has been accredited by the Ministry for Industry and Trade, which enables its investors to benefit from the tax relief system – zero property tax rate and 3.5% reduction in the regional part of the income tax rate.
The Chelyabinsk Region Investment Development Agency noted that the project was an example of industrial cooperation between innovative enterprises and flagships of the regional and national economy. Such cooperation improves the efficiency of production processes, and helps diversify the economy and create jobs. (MMK/Ukrainian metal)