In 2020, the economic impact of rationalisation proposals implemented at Magnitogorsk Iron and Steel Works (MMK) was RUB 604.9 mln, up RUB 19.8 mln compared to 2019.

Despite the unfavourable epidemiological situation in Russia and the world in 2020 and the restrictions imposed, rationalisation and innovative activities at MMK continued and developed. In 2020, 4,984 ideas were submitted to expert commissions, of which 3,814 were approved for implementation. Despite a slight decrease in the total number of ideas submitted compared to the previous year, the percentage of ideas accepted for implementation increased to 76.5% in 2020 (compared to 68.5% in 2019), indicating a higher quality of proposal development.

The economic impact of the implemented rationalisation proposals in 2020 was RUB 604.9 mln, which is RUB 19.8 mln more than in 2019. The rationalisation proposals’ creators were paid over RUB 22.7 mln in remuneration.

Also in 2020, 4 patents for inventions and 2 software certificates were obtained.

According to Pavel Shilyaev, MMK's CEO, innovations are included in MMK's list of priority development areas. "Today, all major businesses in Russia and abroad are focused on innovation. Hence why at MMK we pay special attention to the development of rationalisation and innovation activities. The ideas put forward by our innovators develop existing technologies for more effective use in modern conditions, and the system for submitting and implementing proposals developed at the enterprise has been proven effective. We can confidently say that the number and quality of proposals submitted has increased and the time required to implement them has decreased," said Pavel Shilyaev.

MMK management organises competitions, seminars, exhibitions and other events to develop employees' creative potential and motivate employees to show initiative. The Company's divisions hold quarterly competitions for the Best Idea to Solve Problematic Issues, with prizes and financial incentives for the participants.

Additionally, each year the following competitions are held to find "MMK's Best Young Innovator and Inventor" with 16 best innovator awards and "MMK's Best Innovative Proposal" determined in four categories: "Saving Material and Technical Resources", "Occupational Health and Safety", "Energy Conservation" and "Proposals Related to Reduction of Consumption Rates in Production". In each category, first, second and third places are awarded, and the best rationalisation proposal from all categories is determined.