In 2006 MMK signed a contract with the well-known equipment manufacturer SMS-Demag (Germany) for the delivery of a 5,000 mm plate mill and a continuous slab caster. The construction of the above facility at MMK will allow to produce high-margin rolled plate up to 4,850 mm wide for oil and gas sector, ship construction, bridge building and machine industry. Such products are especially required by manufacturers of large diameter pipes. The capacity of the 5,000 mm plate mill will amount to 1,5 million tons per year, including 0,3 million tons of heat treated plate. The start-up of the facility is scheduled for mid-2009.

According to Viktor Rashnikov, Chairman of the OJSC MMK Board of Directors, the 5,000 mm plate mill construction at Magnitogorsk Iron & Steel Works is being implemented in terms second to none in the world –in less than three years.

At present the foundation work and frame building of a shop have been completed. Roofing and facing works are in progress now. At one time as far as the foundations are prepared the installation of the main process equipment starts. Now the equipment of the Plate Mill heating furnaces is being installed. In whole it is planned to mount about 45,000 tons of the equipment, 13,000 tons have been already shipped to the site.