Russian steel producer Magnitogorsk Iron and Steel Works (MMK) has announced that it saved $254 million in 2014 as a result of coordinated efforts across the company's production and functional departments.
The result was achieved due to improved work management during major repairs and equipment modernization ($75 million); the optimization of material flows and raw materials structure, as well as technical measures enacted ($57 million); and the reorganization of fixed asset technical maintenance and the use of innovative materials ($114 million). Management cost optimization delivered another $8 million in savings.
MMK achieved such significant savings in costs and resources thanks to the implementation of its cost-cutting program. In line with previous years, MMK put considerable effort into reducing its consumption of materials, energy and other resources. The company focused on improving resource expenditure control and monitoring systems.