The focus on innovative products and improving end-users’ service experience will become key priorities for Magnitogorsk Metal and Steel Works in the mid-term, says CEO at OJSC MMK Pavel Shilyaev. Mr Shilyaev participated in the 13th Moscow Steel Summit “Russian Steel and Global Market: Towards greater efficiency,” which was held in Moscow under the aegis of Non-commercial Partnership Russian Steel.

According to Pavel Shilyaev, Russia’s metal producers have now exhausted the positive impact of the rouble devaluation, which briefly made Russian metal products more competitive on foreign markets. Today, importing countries have introduced a wide range of protective measures. In this environment, following the completion of large-scale modernisation work, MMK plans to focus on monetisation this investment.

“We acknowledge that the modernisation of key production facilities is an ongoing process, however it does have a cyclical nature. Over the last 15 years of large-scale capital expenditure, the mill has become a completely different and in many ways entirely new facility in terms of both profitability and production quality. The company is now able to offer updated high value-added products to the market. In particular, both Mill 5000 and Mill 2000 are currently are working at 100% capacity. These factors have made it possible to significantly improve financial results and decrease the debt load. Now we plan to focus more on improving the services we offer our customers, gradually increasing high value-added production and cutting costs,” said Pavel Shilyaev.

This theme was also covered by Maxim Lapin, Director for Business Development and Efficiency at OJSC MMK, during his speech at the conference. He mentioned key trends that will have a negative impact on the development of the Russian and global ferrous metals market in the medium term, such as decreasing metal consumption rates, growing protectionism among importing countries, surplus steelmaking capacities and the active use of steel substitute materials.

“In this environment, the most efficient strategy for MMK includes customising and adapting products for specific customers, creating innovative products, and enhancing service. There is ample room to enhance efficiency in these fields. MMK’s geographic location is another of our advantages. The mill is located close to the most metal-intensive regions of Russia and neighbouring countries. The Urals, Volga and Central districts, as well as Kazakhstan, boast significant potential for import substitution,” said Maxim Lapin.

Communications Department