In 2011, the Russian steel producer Magnitogorsk Iron and Steel Works (MMK) expects to see at least a 10 percent year-on-year increase in domestic steel product consumption, due to the continuing growth of demand from leading sectors of the Russian economy, and thus it plans to increase its steel and commercial steel product output by 14 percent and 17 percent year on year respectively, MMK chairman Victor Rashnikov has stated.
Accordingly, in 2010, MMK's share in Russia's production of rolled steel products amounted to 17.3 percent, while its steel product deliveries to the domestic market accounted for 69 percent of its total sales, which is a record volume for the company, Mr. Rashnikov said.
In 2010, MMK actively increased its production, and saw an 18 percent year-on-year growth in its steel output. This was due to the recovery of steel demand, as well as due to the development of new types of products. Nevertheless, MMK did not manage to fully overcome the effects of the global financial crisis - failing to reach full capacity utilization levels.
In 2010, MMK also increased the share of its value-added products from 27 percent in 2009 to 34 percent of its total output. The company's deliveries to pipemakers increased by 48 percent year on year in 2010.
Mr. Rashnikov said that, in 2011 MMK will continue to implement its long-term investment program aimed at meeting the needs of Russian consumers and increase the output of high value-added products. According to the preliminary data for 2010, the capital investments of MMK for the year will amount to $1.2 billion, while the capital investments of the entire MMK group of companies is expected to reach $2.1 billion.