MMK to invest $2bn in capital development in 2008

4 August 2008 (09:11)

This year, Magnitogorsk Iron & Steel Works (MMK) intends to invest over $2bn in capital development. MMK’s BOD Chairman Viktor Rashnikov says this amount is comparable with the sum invested by the enterprise over a whole decade, that is, between 1996 and 2005. Besides, the two-billion-dollar figure comes to twice the amount directed to the company’s capital development last year. This large-scale investment is expected to result in greater production output, a wider range of products, better quality of produce, a bigger share of high-level processing goods, fewer material resource outgoings, and improved manufacturing process, MMK’s PR Department reports.

The enterprise’s long-term investment program is valid through 2020 and is two-fold: in 2008-2013, the production facilities meant for manufacturing of hi-tech products unique to Russia will be set up. Then, the company will concentrate on projects aimed at enhancing production efficiency as well as on achieving self-sustainability resource-wise.

MMK’s most noticeable investment projects include the construction of Mill 5000 (the hot-rolling mill meant for massive plate production) and Mill 2000 (the cold-rolling mill) and the creation of a new polymeric coating facility.

Magnitogorsk Iron & Steel Works is also working on some projects outside its immediate premises, like a pressings-making plant and a maintenance metal goods center in Saint Petersburg. Governor of Saint Petersburg Valentina Matvienko and the heads of local car factories say they would quite like the construction to be completed very soon, while MMK was officially declared the city’s strategic investor.

At the same time, MMK’s investment programs are still Chelyabinsk Region’s grandest and help to promote the region’s development as well as meet the growing domestic demand.

Other materials on the topic::