Potential GDP growth slow-down prompts efficiency drive at MMK

OJSC Magnitogorsk Iron and Steel Works (MMK) has announced plans to maintain production volumes at approximately 12Mt for the next decade.

Maxim Lapin, director for business development and efficiency at MMK said that the plan was to focus on efficiency at its Magnitogorsk facility, meaning production with minimal costs but still maintaining a quality product.

Speaking at the recent Russian & CIS Metals & Mining Week event, organised by Adam Smith Conferences, Lapin told delegates that Russian metal market dynamics over the coming years would depend upon changes in Russia’s economy and that if GDP growth slows down steel demand will stagnate and there will be a decrease in demand for metal from key consuming sectors, such as construction and automotive.

“These sectors remain a priority for MMK, as is demonstrated by significant production growth at Mill 5000 and cold-rolled products at Mill 2000 in 2014,” he said.