MMK’s Additional Investments in Turkish MMK-Metalurji Might Exceed $100m

12 November 2012 (09:41)

November 12, 2012. Magnitogorsk Iron & Steel Works (MMK) is now considering the possibility of making additional medium-term investments of $100m in the development of its Turkish asset MMK-Metalurji in order to cut down on the prime cost and enhance production efficiency, the company reports.

MMK is considering, among other things, putting up an OxiCup-type shaft furnace and a briquette-manufacturing facility (which will reduce the company’s dependence on the scrap metal/rolls price ratio and will allow for effective use of industrial waste and replacement of purchased pig iron with the self-produced kind). Another project is upgrading the hot-roll mill by adding one more housing (in order to expand the range of products manufactured at the mill and to raise the share of high-margin goods).

‘We are always on the look-out for new ideas that we could adapt so as to increase the efficiency of existing technological and production processes on our Turkish site considerably. At the moment, there are several projects under consideration in our portfolio, and investments might come to more than $100m,’ says MMK Director-General Boris Dubrovsky.

MMK predicts the economic situation will get better soon, so the global metallurgical sector will recover as well; this includes ferrous metallurgy, too. This is why the company sees further development of its Turkish asset as one of its priorities.

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