MMK to raise domestic shipments share to 72% by 2015
26 April 2013 (17:49)
UrBC, Chelyabinsk, April 16, 2013. Magnitogorsk Iron & Steel Works (MMK) is planning to increase its share on the key metal-consuming industries’ market in the future, MMK Business Development & Efficiency Management Director Evgeny Redin said at the 5th International Industrial Forum on Reconstruction of Industrial Enterprises.
According to the company’s top manager, MMK’s strategy is now targeted at raising the share of domestic shipments in the total sales structure, which has to do with the fact that the home market is now growing faster than the global one and with the fact that MMK is located in a very favorable geographical position as far as Russia’s most metal-consuming territories (the Urals and the Volga Region) are concerned. In 2012, MMK shipped about 7.5m tons of metal goods to Russian customers; this came to 68% of the total amount of shipments. In the medium term, MMK intends to keep on increasing the share of domestic shipments and to raise it to 72% by 2015.
‘There are three industrial sectors in Russia that form the demand for metal goods. Firstly, this is the building industry, which consumed 68% of all the metal goods in Russia last year. Secondly, this is the pipe-making industry (18%), and thirdly, this is machine-building (including the carmakers) (13%). It is forecast that all these key metal-consuming industries will be growing in the medium term, so MMK management expects to build up the company’s share on these sectors’ markets,’ Redin said.
According to the company’s top manager, MMK’s strategy is now targeted at raising the share of domestic shipments in the total sales structure, which has to do with the fact that the home market is now growing faster than the global one and with the fact that MMK is located in a very favorable geographical position as far as Russia’s most metal-consuming territories (the Urals and the Volga Region) are concerned. In 2012, MMK shipped about 7.5m tons of metal goods to Russian customers; this came to 68% of the total amount of shipments. In the medium term, MMK intends to keep on increasing the share of domestic shipments and to raise it to 72% by 2015.
‘There are three industrial sectors in Russia that form the demand for metal goods. Firstly, this is the building industry, which consumed 68% of all the metal goods in Russia last year. Secondly, this is the pipe-making industry (18%), and thirdly, this is machine-building (including the carmakers) (13%). It is forecast that all these key metal-consuming industries will be growing in the medium term, so MMK management expects to build up the company’s share on these sectors’ markets,’ Redin said.
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