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MMK Strengthens Foothold in Russian Market
02/25/2011 - Magnitogorsk Iron and Steel’s share of shipments to the domestic market increased to 69% of the company’s total metal products sales in 2010.
Magnitogorsk Iron and Steel’s (MMK’s) share of shipments to the domestic market increased to 69% of the company’s total metal products sales in 2010.
“Given the geographical proximity and favorable growth perspectives, we see domestic marketplace as strategically important and a top priority market,” said Victor Rashnikov, MMK Chairman of the Board, commenting on the fact that the company has been selling increasing amounts of its products inside Russia in recent years.
In 1999, MMK sold 36% of its total output domestically, and in 2005, MMK’s local sales outscored exports for the first time. The year 2008 witnessed 7.2 million tonnes in domestic sales, representing 65% of gross shipments, while in 2009 the global economic downturn resulted in a slight increase of export share compared to local sales. In 2010, MMK’s distribution in Russia and CIS increased to more than 7 million tonnes, an increase of 44% from 2009.
In 2010, MMK’s monthly local shipments grew steadily through the year, reaching a maximum of 671,000 tonnes in September. Last year the share of the company’s shipments to the domestic market grew to almost 69% of total sales, demonstrating the highest ratio in the past fifteen years. Subsequently, MMK’s international export share in 2010 went down to 31.2%, which compares to 44.1% in 2009.
Traditionally, MMK’s key domestic customers include the pipemaking sector, which accounted for 34% of local sales in 2010; the machine-building industry (13% of local sales); the construction and engineering sector (11% of local sales); and metalware manufacturing (9% of local sales).
MMK is among the world's largest steel producers and is one of the leaders of Russia's steel industry. The company's operations in Russia include a large steel producing complex encompassing the entire production chain, from preparation of iron ore to downstream processing of rolled steel. MMK turns out a broad range of steel products with a predominant share of higher value added products. MMK realizes MMK-Atakas project in Turkey with annual capacity of 2.3 million tonnes of flat steel. In 2010, the MMK Group produced 11.4 million tons of crude steel and 10.4 million tons of commercial steel products. In 2009, MMK Group reported revenue of USD 5.081 billion, EBITDA of USD 1.285 billion, and profit of USD 219 million.
“Given the geographical proximity and favorable growth perspectives, we see domestic marketplace as strategically important and a top priority market,” said Victor Rashnikov, MMK Chairman of the Board, commenting on the fact that the company has been selling increasing amounts of its products inside Russia in recent years.
In 1999, MMK sold 36% of its total output domestically, and in 2005, MMK’s local sales outscored exports for the first time. The year 2008 witnessed 7.2 million tonnes in domestic sales, representing 65% of gross shipments, while in 2009 the global economic downturn resulted in a slight increase of export share compared to local sales. In 2010, MMK’s distribution in Russia and CIS increased to more than 7 million tonnes, an increase of 44% from 2009.
In 2010, MMK’s monthly local shipments grew steadily through the year, reaching a maximum of 671,000 tonnes in September. Last year the share of the company’s shipments to the domestic market grew to almost 69% of total sales, demonstrating the highest ratio in the past fifteen years. Subsequently, MMK’s international export share in 2010 went down to 31.2%, which compares to 44.1% in 2009.
Traditionally, MMK’s key domestic customers include the pipemaking sector, which accounted for 34% of local sales in 2010; the machine-building industry (13% of local sales); the construction and engineering sector (11% of local sales); and metalware manufacturing (9% of local sales).
MMK is among the world's largest steel producers and is one of the leaders of Russia's steel industry. The company's operations in Russia include a large steel producing complex encompassing the entire production chain, from preparation of iron ore to downstream processing of rolled steel. MMK turns out a broad range of steel products with a predominant share of higher value added products. MMK realizes MMK-Atakas project in Turkey with annual capacity of 2.3 million tonnes of flat steel. In 2010, the MMK Group produced 11.4 million tons of crude steel and 10.4 million tons of commercial steel products. In 2009, MMK Group reported revenue of USD 5.081 billion, EBITDA of USD 1.285 billion, and profit of USD 219 million.
