MMK focuses its policies on Russian steel market development

During the meeting held by Russian Prime Minister Vladimir Putin on July 24 with the Russian steelmakers in Nizhniy Novgorod, Magnitogorsk Iron and Steel Works' (MMK) president Victor F. Rashnikov spoke about the company's strategies directed towards the development of the domestic steel market.
 
First, MMK president Victor F. Rashnikov presented a report on the issue of domestic market steel product supplies, according to which, in 2007 85 percent of steel product demand in Russia was covered by domestic steelmakers.
 
Then turning to discuss his own company, Mr. Rashnikov stated that in 2008 MMK is planning to increase its output of steel products directed to domestic consumers by 1.4 million mt year on year to 8.7 million mt, directing its production and marketing policy towards the development of the Russian domestic steel market.
 
In order to achieve stabilization of prices in the domestic market, MMK has started to implement a long-term contract policy including revision of prices in line with market tendencies. MMK has already signed such contracts with TMK, OMK, CHTPZ Group, KamAZ, AvtoVaz and with GAZ Group.
 
Moreover, MMK is also implementing a scaled investment project, directed at satisfying the Russian steel market's growing demand. The total investments made by MMK in technical reequipment of its facilities is estimated at more than $3 billion.
 
The first stage of the project, continuing until 2013, will be directed at manufacturing high-tech, high-value added steel products and will amount to about $10 billion. As a result, by 2013 MMK's output of commercial steel products is to increase to 15 million mt, of which more than 12 million mt is to be delivered to the domestic market.
 
The second stage of the project, planned until 2020, will include the increase of production efficiency and self-sufficiency in raw material supplies through the construction of mining and processing integrated works, Prioskolskiy GOK, in the Belgorod region, the development of the south Ural iron ore base and the commencement of hot-briquetted iron production for the replacement of scrap in EAF production.