MMK Saves RUB 2.5bn Through Efficiency Upgrades

2 September 2019 (09:09)

UrBC, Magnitogorsk, September 2, 2019. Magnitogorsk Iron & Steel Works (MMK) saved more than RUB 2.5bn through a series of efficiency-boosting measures in the first half of 2019, the plant’s Information & PR Department reports.

MMK Group adopted a number of strategic initiatives aimed at improving its operational and functional efficiency as early as 2015; since then, the company has been working on many levels to reduce all kinds of resource spending and has stayed on the lookout for more ways to enhance its resource efficiency. As a result, MMK has made RUB 18.5bn in extra profit since 206 so far, including RUB 2.7bn stemming from low-budget, high-efficiency investment projects (aka Baby Capex).

Tech process optimization in the first six months of 2019 resulted in RUB 1.2bn in savings; Baby Capex projects brought the company an extra RUB 492m; additional RUB 300m and RUB 526m came from implementing the workers’ improvement proposals and energy-saving programs, respectively.

Steps taken to reduce fuel and electric power spending resulted in the most impressive savings figures: RUB 1.24bn in the first half of 2019; cutting back on raw stuffs and ancillary materials saved the company RUB 637m and RUB 375m, respectively. All in all, the company saved over RUB 2.5bn in January-June 2019.

Other materials on the topic::