MagnitogorskIron and Steel Works (MMK) summed up the results of the "Best Supplier - 2019" competition.

The Company held the "Best Supplier – 2019" competition for the fifth year in a row. The competition is aimed at recognising and encouraging the efforts and achievements of suppliers and encouraging them to implement programmes aimed at the continuous improvement of their work. In addition, the competition promotes openness and transparency of procurement processes at MMK and supports the development of reliable partnerships with suppliers.

In the context of coronavirus restrictions, the award ceremony for MMK's “Best Suppliers – 2019” competition was held in video conference format. Welcoming the participants of the online conference, MMK CEO Pavel Shilyaev said: “Today, the Company has more than 1,100 suppliers, whose relationships are one of the key aspects of the Company's successful development. In this regard, MMK is systematically working to evaluate the effectiveness of this cooperation. Each quarter, the supplier rating is calculated based on delivery results. However, we decided to not stop there and to separately acknowledge the best of the best. The "Best Supplier" competition has become a tradition in our Company, and despite the current epidemiological situation in the country and the world, we decided not to break this tradition and to hold this event for the fifth time, although in a slightly different format."

Within the framework of the competition, a commission was created from representatives of MMK’s commercial service, who analysed the supply of material and technical resources for 2019 among the companies with the highest rating. Suppliers were evaluated along multiple criteria, such as the quality of the delivered products, attractiveness on market, optimal price, supplier's customer focus, compliance with contractual delivery dates, delivery volumes, as well as the innovative, scientific and technical component of the goods and services provided.

The commission selected winners in 13 categories who met their obligations in 2019 on time and with the best quality and price. The winners were awarded with Certificates of Merit and commemorative statuettes.

Yuzhny Kuzbass Coal Company, one of the leaders in the Russian coal production market and a strategic partner of MMK, was awarded a Certificate of Merit in the “Coal Concentrate” category. Judges noted that Yuzhny Kuzbass carried out the supply of coal concentrate of the OS (ÎÑ) and CS (ÊÑ) brands with a high level of interaction in the field of quality improvement.

Bogoslovskoe Mining Plant Administration won a Certificate of Merit in the “Agglomeration of Raw Materials” category. Over many years of cooperation, it has established itself as a reliable partner focused on meeting all of MMK's needs for the agglomeration of raw materials.

Teplostroi Training and Testing Centre won a Certificate of Merit in the “Refractories” category. The company has for many years supplied not only high-quality serial products to MMK, but it also aims to create new ideas, raising the bar for other suppliers of refractory materials.

Helukabel Russia, one of the three largest cable producers in the European Union, won a Certificate of Merit in the “Cable Products” category. The commission noted that when fulfilling contractual obligations with MMK, Helukabel Russia strictly complies with the requirements of the contract. Large volumes of products produced by Helukabel Russia were delivered to almost all of MMK's capital construction projects.

LUKOIL subsidiary LLK-international, one of the leaders in the supply of various fuels and lubricants in Russia, won a Certificate of Merit in the “Combustible Lubricants and Fuels” category. LLK-International supplies MMK with hydraulic, turbine and gear oils, as well as oils for rolling mills that meet current international quality standards.

Magnitogorsk Mill Roll Plant was awarded a Certificate of Merit in the “Rolls” category. The company is part of MMK Group and is one of the largest companies in Russia for the production of cast iron and steel rolling rolls. It is continuously improving its own technical production equipment and constantly expanding the range of rolls supplied to MMK and other metallurgical enterprises.

United Services Company was recognised as the best supplier in the “Non-standard and Technological Equipment” category, having played an active role in strategic projects aimed at modernising the plant’s production process, as well as in the construction of new, modern production facilities at MMK. The company annually supplies MMK and the enterprises of MMK Group with high-quality equipment and spare parts.

ATU was awarded a Certificate of Merit in the category “Maintenance and Repair of Automotive Equipment”. ATU is the principal service provider for MMK and other companies of the Group in the sphere of maintenance and repair of automotive equipment.

Tekhnogarant was commended in the “Industrial Safety Expertise” category, having become one of the main service providers for MMK in the sphere of industrial safety expertise. The company recommended itself as a reliable partner with a professional approach and highly qualified specialists, who are able to complete the highest quality of work and right on schedule.

A Certificate of Merit in the “Power Equipment” category was awarded to Blagoveshchensk Valve Plant – a producer of pipeline fittings for the metallurgical and machine-building industries, and part of OMK Group. In 2019 the Blagoveshchensk Valve Plant and MMK concluded a major strategic contract for the delivery of pipeline fittings. The company was commended for its effective pricing and high-quality products.

A Certificate of Merit in the “Investment Projects” category was awarded to SMS group GmbH, a strategic partner of MMK. In 2019, a framework cooperation agreement for the next 10 years was concluded between the two parties on mutually beneficial terms. This year, MMK and SMS have agreed a range of important contracts, including an agreement to reconstruct reversible two-cell mill 1700 LPC-5.

The winner in the “Rubber Products” category was Kursk Technical Textiles Factory, one of the leading producers of conveyor belts in Russia.

Heraeus Electro-Nite, a long-standing partner of MMK, was recognised as the “Best Supplier of Monitoring Devices”. The company was commended for the high quality of its steel express-analysis equipment and punctual deliveries.

At the conclusion of the event, MMK CEO Pavel Shilyaev thanked the winners of the competition for their cooperation and expressed his firm belief that partnerships with the leading suppliers will remain as fruitful and transparent as ever. Mr. Shilyaev also expressed the hope that the nominees will be present in person at the next awards ceremony for the “Best Supplier” competition.

In turn, representatives of the companies that won the “Best Supplier -2019” competition thanked MMK for the fruitful partnership and the appreciation of their work, noting the high level of professionalism of MMK specialists and the constant readiness for dialogue to improve joint activities. According to the suppliers, it is a great honour for their companies to cooperate with the leader of the metallurgical industry, which stimulates their further growth and the improvement of their product and service quality.

MMK, one of the largest metallurgical companies in Russia, pays great attention to improving the efficiency of its procurement processes. Constant and systematic work with suppliers and the improvement of the supply chain enable the plant to reduce the production costs of metal products and offer them on the market at attractive prices. In recent years, the Company has completed several major supply chain projects, raising the effectiveness and transparency of the procurement process, as well as reducing the impact of the human factor on the decision-making process. The procurement activities of MMK have been highly rated by experts: MMK has repeatedly won the annual all-Russian competition “Leader of Competitive Procurement” and was among the winners of the all-Russian competition “Best Procurement Practices”.