OAO Magnitogorsk Iron and Steel Works contacts. Brief description of OJSC MMK

JSC "Magnitogorsk Iron and Steel Works"- the largest manufacturer in the field of ferrous metallurgy in our country. The Company owns the largest metallurgical plant in Russia, located in the Chelyabinsk Region.

The company is controlled by structures close to top management. As of July 1, 2009, 87.26% of OJSC MMK's shares are owned by the nominal holder OOO " Investment company"Settlement and Fund Center", 9.71% - CJSC "ING BANK (Eurasia)", and a little more than three percent - in the hands of minority shareholders.

The main production enterprise of the group is the Magnitogorsk Iron and Steel Works, which, together with a number of related companies, provides full complex operations from mining and preparation of iron ores to deep processing of steel and cast iron. Meanwhile, the enterprises of the group are provided with raw materials by the forces of companies not included in the Holding. Raw materials are purchased, among other things, from OAO Mechel.

The group of companies traces its history back to 1932, when the first blast furnace was launched at the plant in Magnitogorsk.

A) enterprises providing the technological process at the Magnitogorsk Iron and Steel Works:

LLC NPO Avtomatika;
. LLC "Motor transport management";
. LLC "Bakal Mining Administration";
. LLC "Magnitogorsk service center";
. JSC "Magnitogorsk cement-refractory plant";
. ZAO "Mekhanoremontny complex";
. LLC "Minimax";
. OOO "MMK Trading Stroy";
. LLC "MRK-Remont";
. OOO "Ogneupor";
. LLC "Remput";
. CJSC "Russian Metallurgical Company";
. CJSC "Construction complex";
. LLC "Shlakservis";
. LLC "Electroremont";

B) enterprises for deep processing of ferrous metals:

ZAO "Interkos-IV";
. JSC "Magnitogorsk Hardware and Calibration Plant "MMK-METIZ";
. JSC "MMK-Profil-Moscow";

C) companies that ensure the sale of the holding's products:

JSC "Bashmetalloptorg";
. OOO "Trading House MMK";
. LLC "Trading House MMK-Moscow";
. LLC "Trading House MMK-Ural";

D) financial investment companies:

LLC "Region";
. LLC "Investment company "RFTS";
. LLC "Management company "RFTS-Capital".

The main types of products manufactured by the company:

Development strategy JSC "MMK" is aimed at increasing the security manufacturing enterprises groups own raw materials through the acquisition of rights to develop new deposits and the construction of extractive enterprises, as well as through the acquisition of companies in the mining industry; on the constant introduction of new technologies and the modernization of existing facilities. In 2007, the plant adopted an investment program, according to which by 2013 it is planned to allocate more than 10 billion dollars for the modernization of production. In addition, the MMK Group seeks closer cooperation among the Holding's enterprises in order to increase efficiency.
In 2008, the gross proceeds of the OAO Magnitogorsk Iron and Steel Works group amounted to 225,972.4 million rubles, and profit before tax - 15,602,800 thousand rubles. The enterprise produced in 2008 12 million tons of steel and 11 million tons of metal products.

Public corporation " Magnitogorsk Iron and Steel Works" is largest enterprise ferrous metallurgy of Russia, its share in the volume of metal products sold on the domestic market of the country is about 20%. The enterprise is a large metallurgical complex with full production cycle, starting with the preparation of iron ore raw materials and ending with the deep processing of ferrous metals. MMK produces the widest range of steel products among enterprises today Russian Federation and CIS countries. About 40% of OJSC MMK's products are exported to various countries of the world.

The Magnitogorsk Iron and Steel Works is a large metallurgical complex with a full production cycle, from the preparation of iron ore to the deep processing of ferrous metals. MMK has the highest among Russian companies share of production of products with high added value. Fully provided with its own electricity, the plant is the only large ferrous metallurgy enterprise in Russia that does not have its own raw material base.

The company has almost completely abandoned the sale of slabs, and is constantly increasing the volume of production of high value-added products (galvanized steel, polymer-coated steel, tinplate). MMK is also the largest Russian manufacturer sheet metal. The construction of Mill 5000 will allow MMK to enter the rapidly growing market for large diameter pipes. The accelerated development of such industries as pipe, engineering, automotive, construction guarantees a high demand for the plant's products.

Traditionally, the main supplier of sinter and pellets at MMK is the Sokolovsko-Sarbayskoye GPO (SSGPO, Kazakhstan), which provides the plant with 70-80% of raw materials. In 2005, the plant was subjected to a blockade of raw materials, when the GOKs of the current Gazmetall and SSGPO simultaneously refused to supply ore. But Magnitka managed to close the gap in its own raw material security. In early 2007, MMK and Sokolovo-Sarbaisky GOK (Kazakhstan) signed a 10-year contract for the supply of iron ore, according to which the Kazakh company will annually supply more than 12 million tons of ore to MMK. The price of feedstock supplies under this contract will be reviewed annually and will be calculated based on the sales price of the world's largest iron ore producers - CVRD, BHP Billiton and Rio Tinto. MMK is also actively developing its own resource base. In early November 2006, MMK won an auction for the right to develop the Prioskolskoye field in the Belgorod Region. In the next ten years, MMK will have to invest in the Prioskolskoye field from $1 to $1.5 billion.

MMK produces the widest range of metal products among Russian and CIS enterprises. About half of MMK's products are exported to various countries around the world. More than a quarter of production until recently was exported to Asia and the Middle East, where in Lately Chinese manufacturers are actively increasing their presence. Now MMK is moving away from its traditional Asian sales market to the markets of Turkey, India, Morocco, Iran, and Greece.

Mergers and acquisitions

On October 4, 2007, the company announced the acquisition of a 10.75% stake in JSC Belon from its main owner Andrey Dobrov. In March 2008, MMK's stake in the coal company was increased to 41.3%.
Until recently, MMK was the only Russian steel holding that did not have assets abroad. The reason for such a passive strategy is that the owners of the mill could not direct free cash flows for the purchase of assets, because relatively recently solved the problems of ownership. Only at the end of 2004 was the state-owned stake (17.8%) of MMK's shares bought out and 15.9% of the shares were acquired from the Mechel group. After these transactions, MMK's management, headed by Viktor Rashnikov, gained control of 98% of the company's voting shares. In the next few years, management was forced to use all available funds to pay off a loan that was taken to purchase these shares. In Russia, MMK is also not yet very active in the M&A market. MMK rejected the proposal of Metalloinvest (Gazmetal) to merge, despite the apparent synergistic effect- MMK has a shortage of its own raw materials, while Metalloinvest has an excess of it.

In March 2006, in a consortium with two companies from Saudi Arabia and Pakistan, MMK won the auction for the sale of a 75% stake in the Pakistani metallurgical company Pakistan Steel, offering $362 million for the package. At the same time, MMK got 40% in the consortium.

Nevertheless, MMK's international expansion remained only an attempt, together with partners - Al-Tuwairqi and Arif Habib Group - to buy a 75% stake in Pakistan Steel in early 2006. Magnitka emerged victorious, but the Pakistani authorities later annulled the results of the auction. And at the end of 2006, Magnitka was finally able to make large-scale investments abroad, having bought about 4% of the shares of the Australian mining company Fortescue Metals. In addition, by 2009 MMK is going to build a steel plant in Turkey with a capacity of 2.6 million tons of steel per year, together with the Turkish Atakas.

In August 2007, the company bought a 37.5% stake in auto components manufacturer ZAO Interkos-IV from the European Bank for Reconstruction and Development. Also in August 2007, the company's management confirmed the information about the ownership of 5.37% of the shares of Fortescue Metals.

Owners and management

As of the beginning of 2006, 8,858,000 shares were issued, of which 75% are ordinary, 25% are preferred. Of these, 62.3% belong to Russian private shareholders, 23.8% - to the state, 13.6% - to foreign individuals.

42.44% of MMK shares are owned by Mintha Holding Limited, another 43.11% by Fulnek Enterprises Ltd. These companies are 100% owned by Steelnet Ltd. 7.37% - U.F.G. Structured Holdings Ltd. In fact, the plant is controlled by structures associated with management, headed by the chairman of the board of directors, Viktor Rashnikov. As of June 2007, 98% of the company's voting shares are controlled by MMK's management, Viktor Rashnikov has the largest share (87%)

At the end of December 2006, information appeared that the owner of the world's largest metallurgical company Mittal Steel, Lakshmi Mittal, made an offer to the owners of MMK to purchase a controlling stake in the company. According to unofficial data, this proposal was rejected by the owners of MMK and did not receive approval from the presidential administration.

April 23, 2007 MMK carried out an IPO, selling 8.9% of the share capital at the London stock exchange, and raised $1 billion. The placement price was $0.96 per share. The entire company was valued at $11.2 billion at the offering price. The order book was oversubscribed 2.1 times. The organizers were large investment banks - Renaissance Capital, ABN Amro Rotschild, Morgan Stanley.
Capitalization on the London Stock Exchange as of July 6, 2007 - $ 11.856 billion

MMK Group

OJSC MMK Group (Group) — a set of combined unified system management and control of organizations whose activities are aimed at achieving a single strategic goal - maintaining long-term competitiveness and sustainable development.

History of the formation of the Group
Since 1990, OJSC MMK has been undergoing a full-scale restructuring, which solved the following tasks:

maintaining jobs;
intensification of funds for technical re-equipment;
increasing the interest of managers in the results of financial and economic activities;
reducing costs for non-core production by minimizing costs within the established subsidiaries;
market research and expansion of the range of products.

Maximum Activity this process was achieved in 1997 - 58 companies were created with the participation of the capital of OJSC MMK by separating structural divisions from OJSC MMK.
In subsequent years, MMK acquired new assets on the market, creating a vertically integrated structure, and restructured existing long-term financial investments.
As of June 30, 2008, the OJSC MMK Group includes 56 companies.

Relationship policy in the MMK Group
The strategic goal of the MMK Group is to maintain long-term competitiveness and sustainable development.
When developing and implementing the strategy, the members of the OJSC MMK Group are guided by the following principles of organizing activities:

concentration and efficient use of resources of the MMK Group;
unified approaches to the implementation of investment, marketing, production and technological, social and accounting policies;
priority placement of orders within the MMK Group;
single A complex approach when forming and implementing the plans of the OJSC MMK Group;
unified corporate culture and Social responsibility business;
optimization of activities in the OJSC MMK Group;
continuous improvement and innovation;
integrated security and risk management.

Tasks of the OJSC MMK Group, the solution of which contributes to the achievement of the strategic goal:

implementation of strategic planning for the development of the OJSC MMK Group;
development of unified corporate standards governing the areas of activity of the OJSC MMK Group;
quality improvement and introduction of new technologies;
ensuring efficient operation;
ensuring a single information space, development and integration of information technologies;
placement of orders within the MMK Group on optimal terms market prices and unified quality requirements;
expansion of presence in the markets;
maintenance and development of common corporate values;
legal assistance to organizations included in the MMK Group.

Financial indicators

Growth in production and a good price environment on the domestic market enabled Magnitogorsk Iron and Steel Works to increase its key financial indicators. In 2007, MMK Group's revenue increased by 27.6% year-on-year and amounted to USD 8,197 million. Operating profit amounted to USD 2,079 million or 25.4% of revenue (17.8% growth compared to 2006). The consolidated net profit of the company for 12 months of 2007 increased by 24.3% compared to the same period last year and amounted to USD 1,772 million, the share net profit in revenue amounted to 21.6%. The value of EBITDA for 12 months of 2007 amounted to 2,342 million US dollars or 28.6% of the proceeds. Compared to 12M 2006, the company's EBITDA increased by $337 million, or 16.8%.

The main strategic goal of OJSC MMK:

Maintaining long-term competitiveness in the global market rolled metal .

The main strategic goal is achieved by achieving the following strategic goals:

Encouraging all employees to achieve goals based on professional development, involvement in the process of quality management, satisfaction with the results of work and social guarantees.
Providing guarantees of efficiency, reliability and liquidity for investors;
Reduction harmful effects on environment.

Development strategy

Mission of OJSC MMK:
"Manufacture and marketing of high quality steel products that meet the needs of our customers, to generate a profit in an amount sufficient to develop the enterprise to the level of a leading global company and implement a sound social policy."
Following the mission of OJSC MMK is possible only if there is a long-term opportunity to produce and sell metal products. Therefore, the main goal of OJSC MMK is to maintain long-term competitiveness in the global rolled metal market.
The main strategic goal is achieved through:

Gaining a leading position in the development and implementation of new technologies;
Improving the quality of steel products and developing new types of products to meet current and future needs and expectations of consumers;
Preservation and expansion of sales and supply markets;
Increasing production efficiency;
Reduction of harmful impacts on the environment;
Involvement of all employees in the quality management process;
Encouraging all employees to achieve goals;
Ensuring social protection of OJSC MMK employees.

The strategy developed by OJSC MMK to achieve the set goals is being implemented in the following areas of activity:

Continuous comprehensive development of the company, which provides for the replacement of obsolete technologies and equipment, the use of existing and newly commissioned modern high-tech, environmentally friendly production facilities with the maximum load;
Achieving more high efficiency in the production of cast iron, steel, rolled products, high value-added products;
Strengthening the position in the market by improving the quality of products, conducting marketing research and developing a market strategy;
Preservation in the long term of the versatility of the assortment (sheet and grade), with the company's primary focus on the production of high value-added flat products;
Creation of comprehensive guarantees for the reliable functioning of OJSC MMK;
Increasing the production of high-quality cold-rolled sheet, coated sheet, products of high (IV and V) processing stages;
Implementation of energy-saving technologies and expansion of own energy base;
Implementation of the environmental management system in accordance with international ISO standard 14001-96;
Improving the social climate by increasing the level wages and having an effective package social programs and guarantees;
Creation of an integrated financial and industrial structure with the participation of OJSC MMK;
Acquisition of enterprises that process OJSC MMK's products in significant volumes or supply raw materials and supplies to OJSC MMK;
Increasing the manageability of the enterprise and information transparency for investors and shareholders.

The investment program of the Magnitogorsk Iron and Steel Works is designed for seven years starting from 2007 and provides for investments in the amount of more than $5 billion. Among the main areas of development are:

construction of a rolling mill-5000 (completion is expected by 2009, the cost of the project is about $1.5 billion);
construction of new units for hot-dip galvanizing and polymer coatings;
construction of a convector with a capacity of 2 million tons, a new coke battery;
construction of a new universal cold rolling mill for the production of high-quality auto sheet (with a capacity of about 2 million tons of sheet per year) and rolled stock for coated rolled products (commissioning approximately by 2010, the project cost is about $1 billion);
construction in St. Petersburg (in Kolpino) of a plant for the production of stamped parts with a capacity of about 300,000 tons of stamped parts per year (estimated cost is about $100 million)

The central link of the strategy is the reconstruction of production facilities. In accordance with the investment program developed until 2013, the volume of investments in the modernization of production is more than 1 billion US dollars.

Website
www.mmk.ru

Buffett score : 7,56 out of 10

The first-born of the five-year plans, the armored shield of the country, the giant of the Soviet industry, the flagship of the domestic metallurgy, the "trendsetter" in the metallurgical industry - this is all about MMK. His records conquered the whole world: his very appearance from scratch in as soon as possible became a major achievement.

Reference Information:

Company name: PJSC "MAGNITOGORSK METALLURGICAL WORKS";
Legal form activities: public joint stock company since May 26, 2017;
Kind of activity: production and sale of ferrous metallurgy products;
Revenue for 2016:$5,630 million;
Beneficiary: Viktor Rashnikov, Chairman of the Board of Directors;
Number of employees for 2016: 18,077 people;
The site of the company: http://mmk.ru/

In the February days of this year, the Magnitogorsk Iron and Steel Works, the city-forming enterprise of Magnitogorsk, one of the most famous, constituting the industrial heritage of the USSR, accepted congratulations in connection with the anniversary. Exactly 85 years ago, on February 1, 1932, the first blast furnace produced the first cast iron. It was this day that began to be considered MMK's birthday. There was not a single person in the Soviet Union who did not know about this firstborn of the first five-year plans and a symbol of Soviet industrialization.

The history of MMK (Magnitka is a more familiar name) is a real "phenomenon" in the history of the country. The deaf Ural steppe - and the giant of the Soviet industry, which rose from scratch in record time, solely thanks to the dedication of thousands of first builders. That was incredible. No one in the world believed that this was possible. As they did not believe later, when the plant took only a month to start producing armored steel for the country at war with the Nazis.

“Since the launch of the first blast furnace in Magnitogorsk until today, MMK has mined over 430 million tons of ore, produced more than 700 million tons of sinter, 614 million tons of pig iron, 791 million tons of steel and 633 million tons of marketable metal products. If all the steel smelted in Magnitogorsk over 85 years is presented in the form of a sheet 0.5 mm thick, then it could cover an area of about 200 thousand square meters. km. This is more than the territory of such countries as Belgium, the Netherlands, Austria and Switzerland put together.”

Metal from Magnitogorsk still serves in DneproGES, Baikonur, gas pipelines and oil pipelines. MMK has always been and remains the flagship of the domestic ferrous metallurgy and is proud of the people who have repeatedly demonstrated their unbending character throughout the history of the plant.

How Mount Magnetic was conquered

Both the city of Magnitogorsk itself and the plant owe their birth to that mountain (and the name too). The unique accumulation of iron ores in a small area, according to the first estimates of experts, amounted to about half a billion tons of iron ore, high-grade with an iron content of up to 70%, and most importantly, not deep, and in some places came to the surface.

They say that the Magnitnaya fortress Orenburg governor I.I. Neplyuev founded in 1743 solely for the purpose of protecting the mountain from unauthorized attempts to extract ore. In the vicinity of the mountain, Pugachev fought with the tsarist army, and the fortress itself, by the way, even served as a base for the Pugachev rebels.

When, a century later, the government commission headed by D.I. Mendeleev, explored the mountain in 1899 and produced necessary calculations, the estimated reserves of ores amounted to 1 billion pounds, although a little later more detailed calculations allowed to triple this value.

The same Dmitry Ivanovich repeatedly pointed out that it is much more expedient to organize the production of pig iron using coal as the main fuel for metallurgical production. He said that it was very important to build large blast furnaces capable of smelting pig iron much cheaper using mineral fuel delivered from Western Siberia, where deposits were discovered. hard coal. Siberian Railway passed very close. For the iron business in the Urals, this could be a real impetus.

Only now the ineradicable Russian bureaucracy did not allow this idea to be implemented. Until the October Revolution itself, to combine Siberian coal and the Urals iron ore did not succeed.

In May 1925, in Sverdlovsk, they began designing the Magnitogorsk plant near Magnitnaya Mountain, which, according to the plans of the young Soviet government, was destined to become the largest metallurgical plant in the country. Four years later, construction began on the territory of the Chelyabinsk region.

Even the most difficult conditions in which the first builders of Magnitogorsk had to work did not prevent them from starting mining in August 1929. Ore from Mount Magnitnaya was sent to the Ural factories.

By the beginning of 1931, blast furnace, open-hearth and rolling shops had already been erected, a little later a refractory shop was put into operation, the 1st blast furnace was put into drying, the central power plant gave the first current, and on February 1, 1931, Magnitogorsk gave the first cast iron. Her birth took place. Already in the summer, blast furnace No. 2 produced cast iron.

The plant developed rapidly. Only one year has passed, and two more blast furnaces, four open-hearth furnaces have already been launched. Steel is smelted at Magnitka. And with the launch of the section rolling mill 500 in 1934, the plant became an enterprise with a complete metallurgical cycle.

World history has never known examples of the construction of such a grandiose industrial facility in such a short time, when technical capabilities are minimal.

This largest domestic metallurgical enterprise was destined to become a real armor shield during the Great Patriotic War. This was also facilitated by the geographical distance from the hostilities.

From the first days of the war, MMK lived and worked for the front, for victory.

To fulfill complex military orders, a radical restructuring of production was required. Metallurgists had to adapt furnaces for smelting armored steel. All over the world, this was done in low-tonnage open-hearth open-hearths, so that this technology was now being urgently mastered at MMK. A month after the start of the war, they were able to get the first armored steel. Moreover, Magnitogorsk created new technology its smelting in large open-hearth furnaces with a main hearth, than in the metallurgy of high-quality steel, literally made a revolution.

A shop for heat treatment armor, he accepted the first armor plates already in September 41st.

Magnitka became the country's military arsenal, also producing shells, hand grenades, parts for rockets and other defense products.

New production units were built and put into operation:

open-hearth furnace No. 19;
mill "2350" from Zaporozhye;
coke battery;
blast furnaces No. 5 and No. 6.

We can safely say that over the years, a whole plant with a complete metallurgical cycle has been built and mastered in Magnitogorsk. During the war years, every third shell was produced from Magnitogorsk steel, the armor of every second Soviet tank.

And in the post-war years ... a "trendsetter" in the iron and steel industry

Steel production continued to grow at a rapid pace. During the first twenty post-war years, MMK put into operation 14 open-hearth and 4 blast furnaces, 6 rolling shops and the same number of coke batteries.

Magnitka even in many ways was a "trendsetter" in the industry:

In the mid-70s, the plant produced 15 million tons of steel and 12 million tons of finished rolled products per year. Production remained at about the same level for several more years. And in 1989 Magnitka reached a record figure - 16 million tons of steel per year.

into a market economy

The collapse of the Union, entry into the market for the plant could not but have negative consequences. In 1992, the Magnitogorsk Combine becomes a joint stock company. The main goal that stands before him is the reconstruction and modernization of production. There is no other way. Fixed assets are worn out, technologies are already outdated by that time. The converter complex alone fully met the requirements of modern metallurgical technologies. And still, production volumes by the mid-90s were far from record-breaking. Why is there MMK, there is an economic recession throughout the country, and most of the large consumers of metal are on the verge of stopping. First of all, it concerned machine-building and defense complexes.

From the end of the nineties, a grandiose restoration began at MMK.

A large-scale investment program aimed at technical re-equipment was developed.
It took fifteen whole years until modern production complexes were put into operation at the plant, which made it possible to ensure the production of products that could compete in the domestic and foreign market.

During this time, metallurgists have abandoned the open-hearth method of steel smelting, all steelmaking capacities have been updated, section rolling production has been completely reconstructed, galvanized rolled products and rolled metal with a polymer coating are produced on high-performance modern units.

The measures taken have significantly improved the ecological situation in the city.

The year 1997 was a turning point for Magnitogorsk. The plant achieved an increase in steel production, and in subsequent years the volume of production gradually increased.
The implementation of the integration policy has become another direction in which the plant has developed. Since 2002, MMK has owned controlling stakes in the calibration and hardware-metallurgical Magnitogorsk plants. Due to their merger, the hardware industry of the country has gained large JSC"Magnitogorsk hardware and calibration plant" MMK-METIZ ".

MMK continues to expand and create its own resource base by joining the Belon coal company and the Profit company specializing in the supply of scrap metal.

In addition, the plant implements part of the projects outside Magnitka. A plant for stamped auto components was built in Kolpino, and a metallurgical complex "MMK Metalurji" was built in the Republic of Turkey.

Any of the projects implemented by MMK is another step towards strengthening competitiveness and sustainable development.

"In accordance with new edition of the Charter, from June 5, 2017, the full corporate name of MMK in Russian is the Public Joint Stock Company Magnitogorsk Iron and Steel Works, the abbreviated corporate name is PJSC MMK; full corporate name of the joint-stock company on English language is Public Joint Stock Company Magnitogorsk Iron & Steel Works, abbreviated corporate name - PJSC MMK.

The MMK Group is a highly efficient Russian metallurgical company, which occupies a leading position among the industry. It is one of the 30 largest steel producers in the world, ensuring compliance with high standards in the field of ecology and labor protection. MMK does not give up its positions in the domestic market of metal-roll manufacturers, all the last years it has been steadily remaining in the top three with a production volume of 17.5% in the company with NMLK (17.5) and Severstal (15.3). It is the only manufacturer of tinplate in the country.