The Russian steelmaker Magnitogorsk Iron and Steel Works (MMK) has announced that, in line with its production cuts during the current period of crisis, it is implementing a new program for the fourth quarter of this year aimed at decreasing costs and freeing up cash.
Accordingly, MMK plans to centralize purchases, to optimize raw material stocks, to reduce coke consumption, to review the terms and volume of sales, to reduce customers' debts, and temporarily to suspend most of its investment projects. Nevertheless, MMK will proceed with investments in its two main projects to be commissioned in 2009 - its plate mill 5000 and its polymer coating plant No. 2.
As MMK previously announced, its October capacities had to be cut by approximately 15 percent, from around one million mt to 850,000-900,000 mt, in order to cope with the consequences of the global financial crisis.