Actuality February 18, 2008

   Production program of the Magnitogorsk Iron and Steel Works OJSC (ММК, Magnitogorsk, Chelyabinsk region Russia) for 2008 foresees the production of 14,1 mln tons of steel. And the total volume of capital costs will exceed $2 bln, that is two times higher than the last year indices. About this declared the chairman of MMK board of directors and the main beneficiary of the works Viktor Rashnikov on the conference of the trade-union-economic body of the enterprise.

   Summarizing the 2007, Rashnikov marked that last year was continued mastering of smelting technology of steel in electric furnaces, that allowed to increase the output of steel by 6,5% as compared to 2006, and production of metal products – by 7,6$ – up to 12,2 mln tons, that is a maximal index in all history of the enterprise. Moreover, the works managed to strengthen its positions on the priority internal market. According to the year results shipment to the Russian consumers totaled 7,3 mln tons or 60% from the total volume, that by 1,26 mln tons (by 21%) more as compared to 2006.

   Last year realization of the long-term program of production modernization continued also, within the framework of which in 2007 for capital construction was directed RUR 22,4 bln. Were also marked achievements of OJSC MMK subsidiaries that in the past year also increased production volumes and continued realization of the own investment programs. Among other events of 2007 significant for the enterprise Viktor Rashnikov marked MMK entrance to international stock markets and the start of significant in a strategic plan investment projects, including outside the Magnitogorsk production ground.

   According to the chairman of MMK board of directors, in 2008 the enterprise faces no less ambitious tasks. The production program of MMK for 2008 foresees the production of 14,1 mln tons of steel, including 10,3 mln tons of converter steel and 3,25 mln tons of electrical steel. In the current year the output of saleable products should make 13 mln tons, and that almost 800 000 tons more than the record production of 2007. The program of capital construction and technical re-equipment in 2008 plans the total volume of capital expenses to the sum RUR 51 bln (more than $2 bln), and that exceeds the level of 2007 more than twice. This sum of investments is compared to the volumes of MMK expenses for capital construction for the10 years period, from 1996 to 2005. Within the framework of measures for reconstruction and modernization of production in 2008 it is assumed to complete construction of a new aggregate of the continuous hot galvanizing and reconstruction of hot mill "2000", to continue construction of plate mill "5000" complex, to start construction of cold mill "2000" complex.