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MMK grows more energy-efficient


1.10.2015
UrBC, Magnitogorsk, Chelyabinsk Region, October 1, 2015. Magnitogorsk Iron & Steel Works (MMK) now focuses on low-budget, highly efficient investment projects with a short payoff period, the company reports.

The shortlist of projects with payoff period of under 2 years is based on a longer list of proposals presented by MMK departments. In the first half of 2015, some fifty low-budget investment projects (Difficulty Level 2) were considered and implemented. There are 26 first-priority projects with the average payoff period of 1.22 years and 28 second-priority projects with the average payoff period of 0.97 years. There is also a stand-alone project on reconstruction of furnace regenerators for hot-roll Mill2000. 56.5% of projects are being implemented at the Chief Energy Engineer’s divisions, and a number of energy-efficient projects are also being worked on at the Chief Metallurgist’s divisions and at the sheet-rolling facilities.

MMK’s capital construction program for the year 2015 allows for 300m RUR to be spent on the projects. The decision whether to go on with a given project is based on the payoff period (no more than 2.1 years, with allowances made for the equipment cost. The company expects to direct 224m RUR to equipment design and delivery this year and some 458m RUR next year. The expected savings are estimated at 511.3m RUR.

In the meantime, a list of third-priority projects is being prepared. Based on the proposals presented, next year’s expenses are expected to come to 1.1bn RUR.
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