OJSC Magnitogorsk Iron and Steel Works ("MMK" or "the Company") (LSE: MMK) plans to maintain its position on the Russian coated steel market, despite an anticipated decrease in consumption in 2016.

This was reported by a representative of MMK at the 11th international conference named Galvanised and Dyed Metal: Production and Consumption Trends. He added that MMK’s share of the Russian galvanized steel and polymer-coated steel market amounted to 31% and 16%, respectively, in 2015.

The Russian market remains the priority for MMK. In 2015, shipments of galvanized steel to the domestic market amounted to 86%, whilst exports made up the remaining 14%. Sales of polymer-coated steel on the domestic market totaled 88%. The remaining 12% were sold in CIS countries, up from 7% in 2013.

A representative of MMK stated that the key aims for 2016 remain to increase efficiency of production and sales, as well as improve the quality of service. At the same time, the company plans to focus on producing high-quality coated metal and expand the product mix.

To help achieve these aims, a slitting unit is being mounted at the mill. This unit will allow the slitting of pickled hot-rolled, cold-rolled and coated metal. The new equipment will make it possible to significantly expand MMK’s product mix and produce rolled steel and bands of 0.3 to 3.0 mm thickness and 30 to 900 mm width with internal diameter of 508/610 ìì. Pre-commissioning operations will be completed in May. The production is scheduled to start in May-June 2016.

Communications Department