MMK’s Investment Projects to Raise EBITDA by $686m A Year

18 November 2019 (09:13)

UrBC, Magnitogorsk, November 18, 2019. The investment strategy adopted by Magnitogorsk Iron & Steel Works (MMK) for the years 2015-2025 is going to result in a $686m increase in EBITDA (Earnings before Interest, Taxation, Depreciation & Amortization) every year, the company’s top manager announced during Investor Day events in London, MMK’s Information & PR Department reports.

Chair of the BOD at MMK Viktor Rashnikov, Director-General Pavel Shilyayev, independent member of the Board of Directors Tav Morgan, and Director for Economic Issues Andrei Yeremin all gave their talks in front of an audience of international investors, finance analysts, and reporters.

According to Chair of the BOD at MMK Viktor Rashnikov, MMK keeps implementing its development strategy and has already accomplished a series of key projects within the new investment cycle; the projects all aim to expand MMK Group’s share of the high-margin market segments. The company keeps working on its large-scale investment program in order to renovate the company’s sintering/coking coal/blast furnace facilities and to make them more efficient. Quite importantly, the new projects also aim to reduce the Group’s environmental impact through the use of the best available techniques.

MMK intends to direct some $900m a year to capital investments in 2020-2023, with a slowing down in 2024-2025, Rashnikov said. All in all, the company expects to allocate $2.879bn for its key investment projects in 2015-2025.

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