MMK Cuts Production Costs $135m

25 February 2016 (09:33)

UrBC, Magnitogorsk, Chelyabinsk Region, February 25, 2016. MMK Group’s performance efficiency enhancing programs saved the company $135m in production costs last year, which means the prime cost of the company produce declined by nearly 3%, the company reports.

Last year, the Group’s member enterprises made a special focus on energy efficiency improvement projects, encouraged innovation, inventions, and improvement proposals. The savings from energy spending cutting programs and low-budget yet highly efficient investment projects amounted to $30m in 2015. Also, improvements in the technological processes resulted in $50m more in reduced raw stuffs and materials costs. Special administrative and technical initiatives helped the Group spend $19m less on repairs and maintenance, while another $36m worth of savings came from optimization of managerial costs.

All of MMK Group’s member enterprises keep working on cost-cutting through ongoing improvement programs this year as well.

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