MMK Home Market Sales Up 6%

14 March 2019 (09:23)

UrBC, Magnitogorsk, March 14, 2019. Magnitogorsk Iron & Steel Works (MMK) sold 9,029,000,000 kg of ready metal goods to customers on the home market (including the CIS member states) last year, which exceeded the figures for one year earlier by 6%.

According to MMK’s Information & PR Department, this is the second best result in the last five years (the sales peaked in 2014, when the company sold 9,588,000,000 kg of goods to its customers). The plant currently sells 79% of its produce on the home market.

‘In geographical terms, the Urals remain our key market, given MMK’s location; 36% of our produce got sold to Urals-based customers in 2018, whereas 18% got sold to customers in the Volga Region, 15% got sold to customers in the central part of Russia, and 15% got sold to customers in the CIS member states,’ MMK says.

Within Russia, pipe manufacturers buy the better part of MMK’s produce (more than 2,000,000,000 kg of metal goods in 2018). Around 880,000,000 kg got sold to metal goods plants and semi-integrated steel works; 636,000,000 kg were sold directly to construction companies, building materials manufacturers, and metal structure makers.

Car making factories also remain one of MMK’s key Russian customers (535,000,000 kg in 2018). The plant also sells quite a bit on the spot market: more than 2,500,000,000 kg of metal goods got supplied to metal-trading companies and metal depots last year.

‘The company management adopted a strategic plan to prioritize the home market’s needs as early as at the beginning of the new millennium; this had to do, among other things, with the plant’s very suitable location next to the parts of the country where most of Russia’s metal-consuming enterprises operate. MMK’s largest investment projects we’ve been working on in the last decades are also home market-focused: we set up an up-to-date shape and bar production facility, put up a number of coated metal goods units, and built some major heavy plate and cold-roll galvanizing mills to make zinc-coated automobile body sheets. All of these investment projects are part of our import substitution program and were meant to enable the company to make the goods that didn’t use to get manufactured in Russia. Today, all of these facilities are operating at their full capacity and bring the company quite a bit of money, as most of their produce is the high value-added kind,’ MMK’s Information & PR Department says.

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