MagnitogorskIron and Steel Works (MMK or the "Company") and TMK held a meeting of their coordinating council in the city of Volzhsky in the Volgograd region. The two sides discussed the results of their joint work and outlined areas for further cooperation. 

The latest meeting was the 27th one for the coordinating council. It was attended by managers and specialists of technical and commercial services at MMK and TMK, as well as by representatives of TMK's Volga and Northern pipe plants and the Taganrog Metallurgical Plant (TAGMET).

MMK Deputy CEO of Sales Sergey Ushakov headed the delegation from Magnitogorsk. The meeting summed up the results of the cooperation between the companies since 2016, and the results of MMK's participation in large-diameter pipe projects implemented by TMK. In 2018, more than half a million tonnes of flat rolled products produced by MMK were shipped to TMK's pipe plants. For the first 9 months of 2019, the shipment of MMK steel products to TMK enterprises will amount to more than 660,000 tonnes. MMK's share in the supply of flat rolled products to TMK in January–September will be 83.4%. In addition, the meeting of the coordinating council addressed the quality of steel products, the development of new types of metal products for TMK and other topics of cooperation.

The pipe industry is one of the key segments for MMK's in the domestic market. It accounts for more than a quarter of all MMK sales in Russia. MMK firmly holds the position of Russia's largest supplier of tackle for the production of welded pipes. Last year, the Company shipped a total of 3.3 million tonnes of hot rolled steel to the Russian market, about 56% of which went to pipe manufacturers. In the first half of 2019, deliveries of steel products from MMK to the enterprises of the pipe industry increased by 28% year-on-year. The total volume of deliveries to the industry in the first half of this year reached 1.32 million tonnes, which makes up 31.4% of MMK's total shipment to the domestic market. Among the consumers of MMK products are all the leading enterprises of the pipe industry in Russia, for most of whom MMK is one of the main suppliers of steel products.

About MMK

MMK is one of the world's largest steel producers and a leading Russian metals company. The company's operations in Russia include a large steel-producing unit encompassing the entire production chain, from the preparation of iron ore to downstream processing of rolled steel. MMK turns out a broad range of steel products with a predominant share of high-value-added products. In 2018, the company produced 12.7 mln tonnes of crude steel and 11.7 mln tonnes of commercial steel products. MMK Group had sales in 2018 of USD 8,214 mln and EBITDA of USD 2,418 mln.

Media contacts:

Dmitry Kuchumov

tel.: +7 (499) 238-26-13

E-mail: kuchumov.do@mmk.ru

Dmitry Bulin

tel.: +7 (499) 238-26-13

E-mail: bulin.dn@mmk.ru