We got everything to defy crisis, MMK Chairman says

Magnitogorsk Iron & Steel Works (MMK) BOD Chairman Viktor Rashnikov reports the enterprise has a lot of competitive advantages that can keep it going and help it defy the crisis.

Rashnikov says that, firstly, MMK has been able to have most of its funds and metallurgical facilities fundamentally upgraded over the last few years. Then, the company is now successfully employing the newest metallurgical technologies and the most advanced machinery. MMK was also able to cut down on the prime cost of its produce through reducing the raw stuff and material spending.

‘What is more, we all know that the company does not borrow as much at the moment. We have always been rather conservative financially when implementing our investment program, so the hi-tech equipment from abroad was acquired through the western banks’ inexpensive loans, while our construction projects were normally covered by our own funds,’ he explains.

The Chairman feels the enterprise has certain liquidity and money in its accounts, which is expected to help MMK survive. Another good thing about the company is definitely the consolidated and professional managerial team with plenty of crisis-defying experience as well as relying on one’s own electricity resources and great technological mobility that allows, among other things, for varying methods of steel smelting.


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