The Russian steelmaker Magnitogorsk Iron and Steel Works (MMK) has announced that in 2010 it expects to exceed its 2009 production level by 30 percent, while its optimal sales geography and shift in product portfolio aimed at further increasing the share of high value-added products will allow it to react with flexibility to changes in the markets.
Accordingly, the completion of its mill 5000 complex (including slab caster No. 6 and secondary steel treatment unit) allows MMK to develop the production of plate of high-strength steel grades (up to X120) and to bring the mill to full capacity in 2010.
Meanwhile, the expansion of its Belon business will allow MMK to increase its self-sufficiency in coking coal and enhance its financial performance. As SteelOrbis previously reported, Belon is aiming to meet 70 percent of MMK's coking coal requirements. MMK gained effective control over Belon in October 2009, controlling an 82.6 percent stake.
"The high level of self-sufficiency in raw materials and energy provides stability in raw materials price growth: MMK is 30 percent self-sufficient in iron ore, 50 percent in coking coal, 100 percent in scrap and 85 percent in electricity," reads the company's statement.
In addition, in 2010 MMK will continue to implement its Turkish MMK-Atakas project in its key market - the Middle East. As SteelOrbis previously reported, in 2010 MMK-Atakas is expected to produce 570,000 mt of finished steel products.