OJSC Magnitogorsk Iron and Steel Works ("MMK" or "the Company") (LSE: MMK) is actively implementing a programme to launch production of high-tensile and wear-resistant steel grades for a wide range of uses under the MAGSTRONG brand.

In January 2016, the first shipment of the new steel to Russian consumers was completed. Currently, shipments for a number of MMK Trading House branches are planned to ensure availability of the whole product range to satisfy demand from various Russian regions.

MAGSTRONG high-tensile wear-resistant steel produced by MMK meets the standards of international peers. This steel is characterized by high resistance against abrasive wear, impact hardness, good welding properties and workability, which makes it possible to increase the life cycle of products produced from this metal as compared to traditional materials. In turn, this results in a significant increase in time between overhauls and less equipment downtime, lower metal intensity and greater savings, particularly for Russian companies, as this is an example of import substitution.

The decision to introduce a new product mix of hot-rolled high-margin metal, which is in demand on both Russian and international markets, was taken by MMK management in mid-2015.

MMK carried out large-scale market research, scientific research and development of production technologies. In November 2015, manufacturing of new steel started, and the first high-rolled products were produced: Í350 (hardness of 350 HBW), Í400 (400 HBW) and Í450 (450 HBW). Prototypes were shipped to key MMK customers for comparison tests versus international peers. The tests confirmed that MMK managed to achieve mechanical working properties at least equal to the level of leading global companies.

ÌÌÊ continues to bring to market high-tensile steel grades with higher hardness specifications.

Communications Department