MMK to supply home market with 8 million tons of metal goods in 2008

9 June 2008 (10:59)

UrBC, Magnitogorsk (Chelyabinsk area), 09.06.2008. Magnitogorsk Iron & Steel Works (MMK) keeps building up on the volume of metal goods supplied onto the home market. The country’s dynamically growing rolled metal goods market offers the enterprise a good chance to do so. MMK’s top executives see the home market as their strategically important priority one, so the company’s home market sales rose by 47% in 2005-2007, while the general production growth only came to 20% over the same period of time. Last year, MMK’s Russian customers received 7.3 million tons of goods, which exceeds the figures for 2006 by 1.3 million tons. 70% of these were delivered to branch enterprises, while the remaining 30% were shipped to regional distributors.

As far as domestic market is concerned, MMK’s key customers are metallurgical enterprises, including pipe plants, machine-building enterprises, car factories, and builders.

This year, the enterprise is planning to raise their metal goods output up to 13 million tons against last year’s 12.2 million tons in order to supply more on the home market. This means that MMK will ship over 8 million tons to its Russian customers this year, the company’s PR Department reports. According to MMK’s CEO Boris Dubrovskiy, who spoke at a recent metallurgical summit in Moscow, the enterprise will be producing 15 million tons a year by 2013, of which 12 million tons can be sold on the home market. Through raising its home sales by 1 million tons a year, MMK expects to become Russian major consumer’s strategic supplier.

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