Annual report 2007 - Magnitogorsk Iron & Steel Works ...

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The management of the MMK Group is pleased to inform that in the year of
2007 the MMK Group successfully coped with the goals and tasks set.
Focus on the Russian and
CIS markets
Raw materials
and power supplies
Rafkat Takhautdinov, Vice President of the MMK
Managing Company for Strategic Development,
Member of the Board of Directors and Management
Board of MMK:
“MMK is a global steel company. We seek to expand our
business. Our strategic priorities consist in strengthening the
Company’s positions on the fast growth markets, developing
downstream processing of steel and attaining raw materials
supply security.”
Summary of the goals attained in the year of 2007
Steel Service Centres have been set up in the Moscow region (city of
Schelkovo) and in the Republic of Bashkortostan (city of Ufa)
The year of 2007 saw positive changes in the structure of shipments
in relation to the sales markets. Shipments of commercial steel products
to the domestic market amounted to 7.3 m tons, with the share of such
shipments in the total volume of shipments growing 6.5% against 2006, up
to 60%.
On February 17 th , 2007 OJSC MMK signed a 10-year contract for
supply of iron ore raw materials from Sokolovsko - Sarbaisky Ore Deposits
(Kazakhstan). The contract provides for a stable supply of iron ore raw
materials in the amount of 12 m tpy
Long-term contracts for supply of coal concentrate have been signed
with OOO Raspadskyi ugol, OOO Kuzmetugol, ZAO Sibuglemet and OOO
TD Mechel, which provide for about 80% of the requirements of the
Company in coal concentrate.
The captive power generating capacity provides 77% of the total
demand of the Company in electric power.