The Russian
steelmaking group Magnitogorsk Iron and Steel Works (
MMK) has announced that by 2014 it plans to increase its steel output by more than 60 percent from the current level, as a result of development of the Magnitogorsk production site and the completion of the
MMK-Atakas project in Turkey.
Accordingly, among
MMK's production site development projects is also the construction of a new converter No.4 to be completed by 2013, which will allow it to bring up its crude steel capacity by two million mt per year.
In addition, also by 2014,
MMK plans to increase its share of high value-added (HVA) steel products in its production portfolio to up to 50 percent, thus accounting for the bulk of the increment in volume growth.
In Q2 2010,
MMK reached a 30 percent self-sufficiency in iron ore - up from 20 percent in 2008, through expanded production at its own iron ore deposits and the implementation of a slag processing program. The long-term agreement with ENRC for the supply of other volumes required is effective till 2017. In addition,
MMK has also covered 50 percent of its requirements of coking coal through acquisition of Belon, and has consolidated the largest scrap collector in
Russia (ZAO Profit), which implies 100 percent integration in scrap.