Magnitogorsk Iron and Steel Works’ (MMK) Industrial Park signed a cooperation agreement with the Chelyabinsk Region Investment Development Agency and Metallurgic Deoxidizers Plant. The parties have agreed to cooperate on a project to construct a plant in Magnitogorsk, which produces deoxidizers for steel, located in MMK Industrial Park. Investment in the first stage of the new production will amount to RUB 70 mln and will ensure the creation of 30 new jobs.

The new plant is expected to be launched in Q1 2019. Its products will be unique in many respects and will be designed for primary deoxidization of metal from steel-making units, at the metal finishing plants and at the ladle furnace units. The production capacity will be up to 10,000 tonnes of deoxidizers per year. The geographical distribution will cover both the domestic market and export destinations such as Europe, Asia, and CIS.

The agreement was signed by Vladimir Dremov, director at MMK Industrial Park, Alexey Bobov, director at the Chelyabinsk Region Investment Development Agency, and Evgeny Zherdev, director at Metallurgic Deoxidizers Plant, at the 24th international industrial exhibition Metal-Expo.

The subsidiary company of Metallurgic Deoxidizers Plant, ‘Trade House TMZ’, has been producing and supplying deoxidizers to the steel market in Russia, CIS and Europe since 2015. The company's know-how is at the heart of deoxidizer production. The enterprise also includes engineering section and a Research & Development centre.

MMKIndustrial Parkis a business-ready asset complex with an area of 65 hectares. With a comprehensive engineering infrastructure and a developed rail network, it boasts the necessary conditions for the quick launch of virtually any new production process. The Park has been accredited by the Ministry for Industry and Trade, which enables its investors to benefit from the tax relief system – zero property tax rate and 3.5% reduction in the regional part of the income tax rate.

The Chelyabinsk Region Investment Development Agency noted that the project is an example of industrial cooperation between innovative enterprises and flagships of the regional and national economy. Such cooperation improves the efficiency of production processes, helps diversify the economy and create jobs.

About MMK

MMK is one of the world's largest steel producers and a leading Russian metals company. The company's operations in Russia include a large steel-producing complex encompassing the entire production chain, from the preparation of iron ore to downstream processing of rolled steel. MMK turns out a broad range of steel products with a predominant share of high-value-added products. In 2017, the company produced 12.9 million tonnes of crude steel and 11.6 million tonnes of commercial steel products. MMK Group had sales in 2017 of USD 7,546 million and EBITDA of USD 2,032 million.

Investor contacts:

Andrey Serov
tel.: +7 (3519) 24-52-97
E-mail: serov.ae@mmk.ru
Media contacts:
Dmitry Kuchumov
tel.: +7 (499) 238-26-13
E-mail: kuchumov.do@mmk.ru
Dmitry Bulin
tel.: +7 (499) 238-26-13
E-mail: bulin.dn@mmk.ru