According to the results for the first half of 2019, the implementation of programs aimed at improving production efficiency at the Magnitogorsk Iron and Steel Works (MMK) has had an economic impact in excess of $38.3 million.
As part of the strategic initiatives adopted in 2015 aimed at improving operational and functional efficiency, the MMK Group has for a number of years been working consistently and comprehensively to reduce consumption of all types of resources and to seek opportunities to further improve efficiency. As a result, since 2016 the company has received an increased profit of $283.26 million. This included the impact of low-budget high efficiency investment projects (Baby Capex), which contributed in excess of $41.34 million.
During the first half of 2019, the optimization of technological processes had an impact of $18.37 million, the introduction of Baby Capex had an economic impact of $7.5 million, invention and innovation provided a saving of more than $4.6 million and the implementation of energy saving measures allowed for a saving of $8.2 million.
Increased efficiency paints the following picture when observed through the prism of saved resources: saving fuel and energy resources had the most significant economic impact ($19 million), followed by base and raw materials ($9.75 million), as well as auxiliary materials ($5.74 million). The total economic impact for the first six months of 2019 amounted to more than $38.3 million.
Tight control over resource expenditure and the search for domestic reserves to reduce costs allow MMK to counter the negative impact of market factors, to ensure the competitiveness of its products and to maintain a strong presence amongst the leaders in both the domestic and global steel industry in terms of economic efficiency. (MMK/Ukrainian metal)