The coordination council of OJSC Magnitogorsk Iron and Steel Works ("MMK" or "the Company") (LSE: MMK) and PAO TMK (“TMK”) held a meeting in Magnitogorsk.

The companies discussed the results of their partnership in 2015. In 2015, overall shipments of MMK’s flat products to TMK’s facilities amounted to 744 ths tonnes, while MMK’s share in TMK’s supply structure amounted to 58.9%. The parties discussed various technical and commercial issues linked to their current and future partnership. In particular, they discussed possible new products, including those to be used within the implementation of major gas pipeline and infrastructure projects, such as Nord Stream 2.

This coordination council meeting was the 21st of its kind. Such meetings are usually held twice a year at MMK or TMK facilities. The meeting was attended by the heads of sales, technology and production departments of ÌÌÊ, ÒÌÊand its subsidiaries — Volzhsky and Seversky Pipe Plants. The parties agreed to hold the next coordination council meeting in September 2016 in Volzhsky.

MMK is a leading metal supplier for the Russian pipe industry. MMK’s hot-rolled steel production capabilities have expanded following the commissioning of the 1.5 mln tonnes thick plate Mill 5000 in 2009. In 2015, MMK shipped more than 2.4 mln tonnes of metal to the pipemakers. TMK is one of the key consumers of MMK in the pipe industry. At the end of the meeting, ÌÌÊand ÒÌÊsigned an agreement on the pricing of rolled steel. The agreement is valid for the period between 2016 and 2018 and the parties believe it will allow both companies to gradually develop their partnership, mitigate risks, improve pricing transparency and plan operations more efficiently.

Communications Department