In 2019, Magnitogorsk Iron and Steel Works’ (MMK) deliveries of steel products to manufacturers of automotive equipment and components in Russia and the CIS exceeded 650 thousand tons, setting a new record for the company.
MMK’s sales of rolled metal products to the automotive industry have set a record for the second year in a row. In 2017, MMK sold 565 thousand tons of steel products in this segment, and in 2018 that figure amounted to 598 thousand tons. At the end of 2019, MMK’s efforts to expand deliveries to manufacturers of automotive equipment and components allowed the company to increase its figures again, resulting in sales of more than 650 thousand tons, including 605 thousand tons to companies in Russia (+8% YoY) and 53 thousand tons to countries in the CIS (+37%). The share of the automotive industry in the total volume of MMK’s deliveries to the Russian market in 2019 was 7.3%.
Working with the automotive industry is one of the priority areas of MMK’s production and sales activities. The company consistently implements its strategic initiative to be “Supplier No.1 for the most demanding customers of the automotive industry on the domestic market”. Within this initiative, MMK has spent many years developing the production of automotive sheet, which provides a high-quality alternative to imports. Currently, MMK is a leading supplier of steel products from ferrous metals for automobile plants and related enterprises producing automotive components. MMK estimates that the Company’s share in the total volume of rolled metal delivered to car factories in Russia in 2019 was more than 50%.
The plant pays special attention to increasing deliveries to foreign car manufacturers that create new car production capacities in Russia and the CIS countries. In 2019, MMK shipped about 102 thousand tons of steel products to these companies, an increase of 35% compared to the previous year.
The growth in the volume of shipments to foreign automakers was made possible largely due to the work of MMK’s production, scientific, technical and commercial services to develop the production of almost all classes of high-strength low-alloy (HSLA) and two-phase (DP) steels. Due to their higher strength, these types of steel allow manufacturers to increase the safety of the vehicle while reducing its weight. Thanks to these features, MMK increased its sales of this type of steel 1.7-fold in 2019 compared to the previous year. MMK plans to continue to increase its volume of high-strength steel deliveries. (MMK/Ukrainian metal)