Annual Report 2010 - Magnitogorsk Iron & Steel Works

16 22 26 28 32 38 50 72MMK , sBusiness ModelMMK’s Missionand StrategyOJSC MMK Boardof Directors'The Company'sProductionSales MarketsFinancesCorporateGovernanceEnvironmentProtectionIn the summer of 2010 recreational and educational camps “Uralskie Zori”and “Gornoye Uschelye” received 3,620 children of MMK’s employees. MMKGroup spent RUB 40 million on compensations for the children’s stay in thesecamps.OJSC MMK continues to implement the maternity support programmelaunched in 2004. In 2010 the Company spent RUB 34 m on this programme.Besides, since 2008 OJSC MMK has been operating a programme of supportto large families. The programme reached 307 families of MMK’s employeeswith three or more children under 18 years old, with a cost in 2010 of RUB 9million.MMK’s housing programmes are implemented by the Klyuch housinginvestment fund. In 2010, it started the construction of a 17-storey buildingcomprising 112 apartments.As part of the national project “Affordable and Comfortable Housing”, in2006 OJSC MMK launched a programme to assist young steel-makers'families in purchasing apartments. Every year 30 young families receivesubsidies in the amount of RUB 80,000 each and a chance to purchase a oneroomapartment at a subsidised price.Much attention is devoted to sports. Every year, winter and summer sportscompetitions are held among various MMK’s divisions. 45 Sports events wereheld in 2010 at the sites and facilities of the Metallurg-Magnitogorsk SportsClub which gathered more than 8,800 employees and members of theirfamilies. Overall, the Company spent RUB 86 million for these purposes.Healthy Way of Life and SportsTo encourage sports and recreational activities MMK has built a number ofsports facilities.Every year, winter and summer sports competitions are held among variousMMK’s divisions which in 2010 gathered more than 3,400 participants.In 2010, Metallurg-Magnitogorsk sports grounds and sports clubs facilitieshosted 45 sporting events, drawing more than 8,800 employees and theirfamilies.MMK also offers corporate outings to the Company-owned ski resorts andthe Vodopad Chudes Water Park. In 2010, ski resorts in Abzakovo and at LakeBannoye near Magnitogorsk were visited by 12,671 employees and theirfamilies.The Company spent RUB 86 million to maintain the Metallurg-MagnitogorskSports Club and to arrange mass entertainment sporting events.MMK conducts its charitable activities and implements its social assistanceprogrammes through the Metallurg Charity Foundation.In 2010, the Metallurg Foundation received contributions for a total of RUB417 million, 93% of which were contributed by MMK Group.The Foundation’s main activity is focused on targeted social support andaid to the disabled, Company veterans, retirees, and the least protectedcategories of population through an extensive network of social facilities.In2010, OJSC MMK allocated RUB 230 million for social support of retirees anddisabled people within the framework of the Zabota("Care") Programme.Steel & Style , 10 MMK ANNUAL REPORT 69