MMK's Chairman of the Board of Directors and the Governor of the Perm Region discussed cooperation at SPIEF

2021-06-17

Jun. 7, 2021 - On 4 June, at the St. Petersburg International Economic Forum (SPIEF), MMK management held a meeting with the Government of the Perm Region. The delegations were led by Victor Rashnikov, Chairman of the Board of Directors of Magnitogorsk Iron and Steel Works (MMK), and Dmitry Makhonin, Governor of the Perm Territory.

The participants discussed MMK-Lysvensky Metallurgical Plant (MMK-LMZ)'s development plans for the coming years and prospects for the plant to win new orders from manufacturers in the region. Victor Rashnikov, Chairman of MMK's Board of Directors, noted that the plant's purchases from enterprises in the Perm Region amounted to RUB 1.5 billion in 2019-2020, showing an upward trend. In January 2021, the roadmap for MMK’s work in the region was signed. Victor Rashnikov noted that currently, MMK cooperates with Foresight, Inversion Sensor, Krasnokamsk Machinery and Repair Plant (KMRZ), Motovilikha Civil Engineering Company and other companies in the Perm Region.

In 2015, MMK-LMZ started implementing a special investment contract (SPIC) to create a sheet rolling complex for the industrial production of pre-painted steel. The amount of investment at the conclusion of the SPIC was RUB 2.5 billion and more than 400 new jobs were created at the plant as a result of the project.

Dmitry Makhonin praised MMK's investment contribution to the development of MMK-LMZ and the town of Lysva. "After LMZ joined MMK, there was a noticeable change to the organisation of the plant’s production processes. This has undoubtedly affected production and sales volumes, and, consequently, wages have increased and new jobs have appeared. From the side of the regional authorities, we support this in every way we can, including through tax incentives and competitive loans from the Foundation for Enterprise Restructuring (FER)," explained the Governor.

During the meeting, MMK management was presented with the opportunities of the Special Economic Zone in Osentsy, the potential for joint work under the regional industrial cooperation programme, as well as preferential financial mechanisms, including loans from the Industrial Development Fund, priority investment projects and other measures of support for local businesses from the Government of the Perm Region.

About MMK-LMZ

MMK-Lysvensky Metallurgical Plant (MMK-LMZ, an MMK subsidiary located in Lysva, Perm Region) is the only manufacturer of electrolytically galvanised steel with protective polymer coatings in Russia. In 2020, despite the constraints of the coronavirus pandemic, MMK-LMZ managed to maintain 2019 production levels. This year, the Company envisions an increase in production volumes by 20%, amounting to 319,000 tonnes.