Annual Report 2010 - Magnitogorsk Iron & Steel Works

More documents

Recommendations

Info

NEW TRACKSMMK’s Missionand StrategyMMK’s missionis to produce and sell high quality steel products that meet the current andfuture requirements and expectations of our customers for the purpose of earning sufficientprofit to secure the Company’s position as a global leader.The principal strategic goal of MMKis to maintain its long-term competitive position on theglobal steel markets.To attain this goal, MMK is taking the following steps:1. Expansion into new markets;2. Diversification into new product lines;3. Cost reduction;4. Securing supplies of raw materials and power resources.EXPANSION INTO NEW MARKETSIncreased Sales of Hot Rolled ProductsThe Company continues to modernize the 2,500mm Hot Rolling Mill, which willincrease its capacity to 5.5 mtpy of products in a wider range of sizes (1.5-25.0 mmthick instead of 1.8-14.0 mm, and 1,000-2,350 mm wide), and in coils of up to 40tonnes(instead of the current 25 tonnes).In July 2010, a new, state-of-the-art cut-to-length line was put into operation, whichis designed to cut hot rolled strip 5-25 mm thick and 1,000-2,350 mm wide woundinto coils, into sheets 3 to 24 m long. The capacity of this line is 1.125 mtpy.Stronger Presence in the Central Region of RussiaOn November 22, 2010, ZAO Intercos-IV, a company of the MMK Group, commissioneda steel service centre in St.Petersburg with a design capacity of 250,000 tonnes ofsheet blanks to produce stamped parts for the automotive sector and white goodsmanufacturers.Promoting Relations with Key CustomersIn November, 2010, OJSC MMK signed a memorandum with OJSC KAMAZ regardingconstruction of a steel service centre in the city of NaberezhniyeChelny (whereKamaz’s main truck manufacturing facilities are located). The centre will be equippedwith a shot blasting machine, the first of its kind in Russia. It is scheduled to go on22
16 22 26 28 32 38 50 72MMK , sBusiness ModelMMK’s Missionand StrategyOJSC MMK Boardof Directors'The Company'sProductionSales MarketsFinancesCorporateGovernanceEnvironmentProtectionstream in 2012 and will process 170,000 tonnes of hot rolled steel per year for the automotive, constructionand machine building sectors.Construction of a Steel Producing Complex in TurkeyMMK is determined to consolidate its position on the Middle Eastern market, and is moving ahead withconstruction of a steel production complex in Turkey that is designed to produce 2.3 million tonnes of rolledproducts per year. The complex will be located in two cities: Iskenderun and Istanbul.In October 2010 the Iskenderun site commissioned a cold rolling complex comprising a continuous pickling line,two-stand reversing cold mill, a continuous hot dip galvanizing line and a colour coating line. A sea port wasbuilt and certified for operation.The Istanbul site commissioned cutting lines at its service centre, and in now installing a continuous hot dipgalvanizing line and a colour coating line.DIVERSIFICATION INTO NEW PRODUCT LINESNew Steel GradesIn February of 2010 a secondary steel treatment unit went on stream in the Company's BOF Shop. It willproducesteel for large-diameter longitudinal welded tubes with increased hydrogen sulphide resistance and corrosionresistanttubes of up to Х-120 strength, special steels, automotive steel (ultra-low carbon, high strength, dualphase,multi-phase and TRIP-steel) and steel for household appliances.In 2010 MMK launched production of 30 new steel grades, including K65, 80HFU, RSA, SAWL 485 FD, DNV485FD, and adopted a process for pouring pipe-making steel grades on the # 6 Continuous Caster of the BOF Shop.Cold-Rolled Auto Body SheetIn 2010 the Company's existing facilities launched the following new products for the automotive sector:• for OJSC AVTOVAZ:• 0.7-2.8 x 1,000-1,500 mm,08GSUT grade cold rolled coils ,• 3.5 x 190 mm,St 10 grade cold rolled band with enhanced quality (P), high gauge precision (V) androughness (Ra) not exceeding 0.63;• 0.7-2.0 х 1,000-1,400 mm,St Н220Р grade CR coils ;• 0.75 х 1.19 х 1,050-1,600 mm,St006/IF steel grade hot dip galvanized (HDG) coils .• for Ford Motor Company:• 0.6-0.79 х 1,000-1,600 mm, stHX260BD grade HDG coils;• DX56D and DX54D grade HDG coils.• for the Urals Automotive Plant:• Cold rolled coils with roughness not exceeding 10 μ.Cold Rolling Shop (#11) commissioning:1st Stage: July 20112nd Stage: July 2012HSS44.5%(HX280YD, DP500...)AHSS15.6%(TRIP, DP600-DP800...)Mild Steel30.8%(IF, DX510, HX180YD...)UHSS9.1%(DP100-DP1200...)Key Parameters of the Cold Rolling Mill:Capacity, mtpy 2.0Width range, mm 850 – 1,880Gauge, mm 0.28 – 3.0Steel gradesHSLA, IF-HSS, BH, TRIP, HX, DP, DX* IF HSS - Interstitial Free High Strength SteelBH - Bake HardeningTRIP - Transformation-Induced PlasticityHSLA - High Strength Low AlloyTensile strength, MPa up to 1,500Steel & Style , 10 MMK ANNUAL REPORT 23
Page 4 and 5: ContentsAnnual Report2010Editor-in-
Page 6 and 7: Products for the Automotive Sector6
Page 8: Statement of the Chairmanof the Boa
Page 11 and 12: 16 22 26 28 32 38 50 72MMK , sBusin
Page 13: 16 22 26 28 32 38 50 72MMK , sBusin
Page 16 and 17: Business Model ММК16
Page 18 and 19: 18Diverse Product Mix and Sales Foo
Page 20 and 21: Significant Growth Potential20
Page 24 and 25: To localize their production, forei
Page 26 and 27: OJSC MMK Board of Directors' Report
Page 28 and 29: The Company's ProductionOperationsT
Page 30 and 31: The Company's Production Operations
Page 37 and 38: Any colouror hue foryourproduct!Col
Page 49 and 50: The Head of the State also highly p
Page 67 and 68: Risk ManagementIn 2010, the followi
Page 73 and 74:
16 22 26 28 32 38 50 72MMK , sBusin
Page 76 and 77:
MMK Industrial Waste108644,8Total s
Page 78 and 79:
Stakeholder EngagementCorporate soc
Page 80 and 81:
Demag, ThyssenKrupp, АМСОМ, AL
Page 82 and 83:
Information forShareholders andInve
Page 84 and 85:
OJSC MMK Share Quotes and Trading V
Page 86 and 87:
conferences for investors with MMK
Page 88 and 89:
Open Joint Stock CompanyMagnitogors
Page 90 and 91:
CONSOLIDATED STATEMENT OF FINANCIAL
Page 92 and 93:
CONSOLIDATED STATEMENT OF CHANGES I
Page 94 and 95:
CONSOLIDATED STATEMENT OF CASH FLOW
Page 96 and 97:
Information on Companies in Which O
Page 98 and 99:
Part Description PagePart 2: Financ
Page 100 and 101:
Use of the GRI Reporting Framework
Page 102:
No. Description Pages CommentsEN2 P
Page 106 and 107:
General Information on OJSC MMKFull
show all

Annual Report 2010 - Magnitogorsk Iron & Steel Works

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?