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

ANNUAL REPORT OPEN JOINT-STOCK COMPANY MAGNITOGORSK IRON & STEEL WORKS
SEASON 2007
Boris Dubrovsky, OJSC MMK’s Managing Director,
Member of the Management Board:
“MMK has been producing and selling steel for over 75 years.
And today MMK is a leader in steel smelting and production of
rolled products on a single site in Russia. In the long-term perspective
I believe that over the recent years we have succeeded in
laying a foundation for our future uninterrupted growth and development.
MMK’s strengths are up-to-date production assets,
highly qualified personnel and a fine-tuned management system.”
In 2007 production of steel and rolled products increased by 6.5% and 7.6%, respectively, against 2006. The
growth of production is attributable to an increase of steel smelting in EAFs.
A 6.9% decrease in sinter production against 2006 is mainly due to a 20 kg reduction in consumption of pure
iron for pig iron production thanks to the commissioning of two sinter stabilization units in December of 2006 and
August of 2007. This allowed to obtain colder sinter with a smaller yield of fine fractions.
A 2.6% reduction in production of coke and pig iron compared to 2006 is mainly due to the shutdown of two
blast furnaces for modernization, including installation of two bell-less charging devices.
In 2007 the Group produced 747,000 tons of metalware, which represents a 22% growth on 2006 and accounts
for a third of all the Russian production of metalware.
In 2007 production of cement increased by 70,000 tons, or 29%, compared to 2006, thanks to the commissioning
of a new, 500 ktpy cement kiln in September of 2007.
Overall, in 2007 OJSC MMK reached the maximum level of production, turning out 12.2 m tons of commercial
steel products, 7.6% up on 2006, which is an all time high in the history of the Works.
The steel smelting capacity grew faster than the rolling division could absorb, resulting in a 5% increase in the
share of commercial slabs and billets in the product mix. By 2013 it is expected that the share of commercial slabs
and billets will go down to 2.5% thanks to:
· the commissioning of a 5,000 mm hot rolling plate mill; and
· the revamping of the 2,500 hot rolling mill.
The production of long products in 2007 grew by 4.8% due to the full utilization of the new section mills’
capacity.
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