Magnitogorsk Iron and Steel Works (MMK)'s Industrial Park ranked 3rd in the category “Sites located up to 250km from an economic growth centre” in Expert-Ural’s annual investment attractiveness rating of industrial parks and special economic zones.

The rating is already in its fifth year, however, this year, the rating’s methodology was changed. Experts believe that the previously existing composite rating indicator was not sufficiently informative for management to make subsequent decisions on the development of investment sites. In addition, it is not always correct to compare diverse infrastructure areas with different primary conditions. Therefore, this year, the attractiveness of sites for potential investors was assessed on the basis of two independent parameters: the site management’s level of client-orientation and the degree of the site’s investment potential.

Over the five years of its existence, MMK Industrial Park has managed to achieve the highest levels of customer focus in Russia, in line with MMK Group's development strategy. "As we see it, the Industrial Park is not so much a business project as an effective tool to support and develop medium and small businesses in the South Urals region, one of the elements of human capital attraction and an opportunity to provide people with alternative growth trajectories," said MMK CEO Pavel Shilyaev.

Diversification of Magnitogorsk’s economic structure is a necessary element of the city's sustainable development. One of MMK management’s strategic initiatives, within the framework of the Company's development strategy to 2025, is titled "Solving the problems of a single-industry town". The initiative assumes business cooperation development for the creation of new production and services in Magnitogorsk, development and implementation of a coordinated corporate policy for interaction with local government and involvement in determining the city’s development priorities in the spheres of urbanism, education and culture. In this regard, the creation of MMK's Industrial Park was a major milestone.

"Placing third among industrial parks located within a radius of up to 250 kilometres from the centre of economic growth is a well-deserved appraisal of MMK Industrial Park's activities in all its chosen areas of development. In addition, it is yet another confirmation that we are following the right path, which we intend to follow in the future," said Vladimir Dremov, Director of MMK Industrial Park.

MMK-INDUSTRIALPARK is a subsidiary of MMK and MMK-METIZ. The park was established in 2016 on the industrial site of the former calibration plant. MMK Industrial Park is a business-ready asset complex with an area of 65 hectares. With a comprehensive engineering infrastructure and a developed rail network, it boasts all 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, zero transportation tax and a 3.5% reduction in local tax profit rates. At present, 36 residents are engaged in production activities at the site. To support and boost business development in Magnitogorsk, MMK's management co-finances projects implemented by MMK Industrial Park residents.

In 2020, the volume of products shipped doubled, amounting to more than RUB 3 billion. This figure is increasing annually by more than 100%. The volume of investment increased by 15% and amounted to RUB 294 million. In total, its residents have invested more than RUB 750 million in their enterprises’ development since the site was established in 2016, indicating a high degree of confidence in the management company and confidence in the prospects for further growth. In 2020, 320 jobs were created, and a total of 927 jobs have been created at the site to date. This figure is increasing every year, both with the arrival of new residents and through the expanding production of existing residents. The total amount of taxes paid was RUB 190 million, which is 20% higher than the same figure for 2019. This was made possible by the introduction of a system of regional and municipal incentives in 2016, which increased the investment attractiveness of the production site.