Brief description of OJSC MMK. MMK Group OJSC Magnitogorsk Metallurgical Plant MMK

OJSC "Magnitogorsk Metallurgical Plant"- the largest manufacturer in our country in the field of ferrous metallurgy. The company owns the largest metallurgical plant in Russia, located in the Chelyabinsk region.

The company is controlled by structures close to top management. As of July 1, 2009, 87.26% of shares in OJSC MMK are owned by the nominal holder LLC Investment Company Settlement and Fund Center, 9.71% - CJSC ING BANK (Eurasia), and a little more three percent - in the hands of minority shareholders.

The main production enterprise of the group is the Magnitogorsk Iron and Steel Works, which, together with a number of related companies, provides a full range of operations from the extraction and preparation of iron ores to the deep processing of steel and pig iron. Meanwhile, the enterprises of the group are provided with raw materials by the forces of companies that are not part of the Holding. Raw materials are purchased, including from Mechel OJSC.

The group of companies traces its history back to 1932, when the first blast furnace was launched at the plant in Magnitogorsk.

A) enterprises providing the technological process at the Magnitogorsk Iron and Steel Works:

LLC NPO Avtomatika;
... LLC "Motor transport department";
... LLC "Bakalskoe Ore Management";
... LLC "Magnitogorsk service center";
... JSC "Magnitogorsk Cement Refractory Plant";
... CJSC "Mechanical repair complex";
... LLC "Minimax";
... LLC MMK Trading Stroy;
... LLC "MRK-Remont";
... Ogneupor LLC;
... LLC "Remput";
... JSC "Russian Metallurgical Company";
... JSC "Construction Complex";
... Shlakservice LLC;
... LLC "Electroremont";

B) enterprises for deep processing of ferrous metals:

JSC "Interkos-IV";
... OJSC "Magnitogorsk hardware and calibration plant" MMK-METIZ ";
... OJSC "MMK-Profile-Moscow";

C) companies providing sales of the holding's products:

JSC "Bashmetalloptorg";
... LLC "Trading House MMK";
... LLC "Trading House MMK-Moscow";
... LLC "Trading House MMK-Ural";

D) financial and investment companies:

LLC "Region";
... LLC "Investment company" RFTs ";
... LLC "Management Company" RFTs-Capital ".

The main types of products manufactured by the company:

Development strategy OJSC "MMK" is aimed at increasing the provision of production enterprises of the group with their own raw materials through the acquisition of rights to develop new deposits and the construction of mining enterprises, as well as through the acquisition of companies in the mining industry; for the constant introduction of new technologies and the modernization of existing facilities. In 2007, the plant adopted an investment program, according to which, by 2013, it is planned to allocate more than $ 10 billion for the modernization of production. In addition, the MMK Group strives for closer cooperation among the enterprises of the Holding in order to ensure an increase in efficiency.
In 2008, the gross revenue of the OJSC Magnitogorsk Iron and Steel Works group amounted to 225,972.4 million rubles, and the profit before tax was 15,602,800 thousand rubles. The enterprise produced 12 million tons of steel and 11 million tons of metal products in 2008.

Public corporation " Magnitogorsk Iron and Steel Works”Is the largest ferrous metallurgy enterprise in Russia, its share in the volume of metal products sold in the domestic market of the country is about 20%. The enterprise is a large metallurgical complex with a full production cycle, from the preparation of iron ore raw materials to the deep processing of ferrous metals. MMK produces the widest range of steel products among enterprises Russian Federation and the CIS countries. About 40% of OJSC MMK's products are exported to various countries of the world.

The Magnitogorsk Iron and Steel Works is a large metallurgical complex with a full production cycle, from the preparation of iron ore raw materials to the deep processing of ferrous metals. MMK has the largest share of high value-added products among Russian companies. Fully supplied with its own electricity, the plant is the only large ferrous metallurgy enterprise in Russia that does not have its own raw material base.

The company has almost completely abandoned the sale of slabs, and is constantly increasing the volume of production of high value added products (galvanized steel, polymer-coated steel, sheet metal). MMK is also the largest Russian producer of sheet metal. The construction of Mill 5000 will enable MMK to enter the fast-growing large-diameter pipe market. Accelerated development of such industries as pipe, machine building, automotive, construction guarantees a high demand for the plant's products.

Traditionally, the main supplier of sinter and pellets to MMK is Sokolovsko-Sarbaiskoe GPO (SSGPO, Kazakhstan), which provides the plant with raw materials by 70-80%. In 2005, the plant suffered a blockade of raw materials, when ore supplies were simultaneously refused by the GOKs of the current Gazmetall and SSGPO. But Magnitka has managed to close the gap in its own raw material security. In early 2007, MMK and Sokolovo-Sarbaisky GOK (Kazakhstan) signed a 10-year contract for the supply of iron ore, according to which the Kazakhstani enterprise will annually supply more than 12 million tons of ore to MMK. The raw material supply price under this contract will be reviewed annually and will be calculated based on the sales price of the world's largest iron ore producers - CVRD, BHP Billiton and Rio Tinto. MMK is also actively developing its own resource base. In early November 2006, MMK won an auction for the right to develop the Prioskolskoye field in the Belgorod Region. In the next ten years, MMK will have to invest from $ 1 to $ 1.5 billion in the Prioskolskoye field.

MMK produces the widest range of metal products among enterprises in the Russian Federation and the CIS countries. About half of OJSC MMK's products are exported to various countries of the world. Until recently, more than a quarter of the products were exported to the countries of Asia and the Middle East, where in Lately Chinese manufacturers are actively increasing their presence. Now MMK leaves its traditional Asian sales market for the markets of Turkey, India, Morocco, Iran, and Greece.

Mergers and acquisitions

On October 4, 2007, the company announced the acquisition of a 10.75% stake in Belon OJSC from its main owner, Andrey Dobrov. In March 2008, MMK's share in the coal company was increased to 41.3%.
Until recently, MMK was the only Russian steel holding company that did not have assets abroad. The reason for this passive strategy is that the owners of the plant could not direct free cash flows to purchase assets, since property problems have been resolved relatively recently. Only at the end of 2004 was the state-owned block of shares (17.8%) in MMK purchased and 15.9% of the shares were acquired from the Mechel group. After these transactions, MMK's management, headed by Viktor Rashnikov, gained control over 98% of the company's voting shares. In the next few years, the management was forced to use all available funds to pay off the loan, which was taken to buy these shares. In Russia, MMK has not yet shown much activity in the M&A market. MMK rejected the offer of Metalloinvest (Gazmetal) to merge, despite the visible synergetic effect - MMK lacks its own raw materials, Metalloinvest has a surplus.

In March 2006, in a consortium with two companies from Saudi Arabia and Pakistan, MMK won the auction for the sale of 75% of shares in the Pakistani metallurgical company Pakistan Steel, offering $ 362 million for the stake. MMK got 40% in the consortium.

Nevertheless, MMK's international expansion remained only an attempt, together with its partners - Al-Tuwairqi and Arif Habib Group - to buy 75% of Pakistan Steel in early 2006. Magnitka emerged victorious, but the Pakistani authorities later canceled the auction results. And at the end of 2006, Magnitka was finally able to make large-scale investments abroad, having bought about 4% of the shares of the Australian mining company Fortescue Metals. In addition, by 2009, MMK intends to build a steel plant in Turkey with a capacity of 2.6 million tons of steel per year together with Turkish Atakas.

In August 2007, the company bought 37.5% of the shares of the automotive components manufacturer CJSC Interkos-IV from the European Bank for Reconstruction and Development. Also in August 2007, the management of the company confirmed the information about the ownership of 5.37% of the shares of Fortescue Metals.

Owners and management

As of the beginning of 2006, 8,858,000 shares were issued, of which 75% are ordinary, 25% are preferred. Of these, 62.3% are owned by Russian private shareholders, 23.8% - by the state, 13.6% - by foreign individuals.

42.44% of MMK shares are owned by Mintha Holding Limited, another 43.11% - by Fulnek Enterprises Ltd. These companies are 100% owned by Steelnet Ltd. 7.37% for U.F.G. Structured Holdings Ltd. In fact, the plant is controlled by structures related to management, headed by the chairman of the board of directors Viktor Rashnikov. As of June 2007, 98% of the voting shares of the enterprise are controlled by the MMK management, the largest share belongs to Viktor Rashnikov (87%)

At the end of December 2006, it was reported that the owner of the world's largest metallurgical company Mittal Steel, Lakshmi Mittal, made an offer to the owners of MMK to buy a controlling stake in the company. According to unofficial data, this proposal was rejected by the owners of MMK and did not receive approval from the presidential administration of the Russian Federation.

On April 23, 2007, MMK held an IPO, selling 8.9% of its share capital on the London Stock Exchange, and raised $ 1 billion. The placement price was $ 0.96 per share. The entire company was valued at $ 11.2 billion at the offering price. The order book was oversubscribed 2.1 times. The organizers were large investment banks - Renaissance Capital, ABN Amro Rotschild, Morgan Stanley.
Capitalization on the London Stock Exchange as of July 6, 2007 - $ 11.856 billion

MMK Group

OJSC MMK Group (Group) - a set of combined unified system management and control of organizations whose activities are aimed at achieving a single strategic goal - maintaining long-term competitiveness and sustainable development.

History of the formation of the Group
Since 1990, OJSC MMK has undergone a full-scale restructuring, which solved the following tasks:

• preservation of jobs;
• intensification of funds for technical re-equipment;
• increasing the interest of managers in the results of financial and economic activities;
• reduction of costs for non-core production by minimizing costs within the established subsidiaries;
• market research and expansion of the range of products.

The maximum activity of this process was achieved in 1997 - 58 companies were created with the participation of the capital of OJSC MMK by spinning off from OJSC MMK structural units.
In subsequent years, MMK acquired new assets on the market, creating a vertically integrated structure, and restructured its existing long-term financial investments.
As of June 30, 2008, the OJSC MMK Group includes 56 companies.

Relationship policy in the OJSC MMK Group
The strategic goal of the OJSC MMK Group is to maintain long-term competitiveness and sustainable development.
In developing and implementing the strategy, the members of the OJSC MMK Group are guided by the following principles of organizing their activities:

• concentration and efficient use of the resources of the OJSC MMK Group;
• uniform approaches to the implementation of investment, marketing, production and technology, social and accounting policies;
• priority placement of orders within the OJSC MMK Group;
• single A complex approach when forming and implementing the plans of the OJSC MMK Group;
• united corporate culture and social responsibility of business;
• optimization of activities in the OJSC MMK Group;
• continuous improvement and innovation;
• comprehensive security and risk management.

The objectives of the OJSC MMK Group, the solution of which contributes to the achievement of the strategic goal:

• implementation strategic planning development of the OJSC MMK Group;
• development of uniform corporate standards governing the activities of the OJSC MMK Group;
• improvement of quality and introduction of new technologies;
• ensuring effective performance;
• provision of a single information space, development and integration of information technologies;
• placing orders within the OJSC MMK Group on the basis of optimal market prices and uniform quality requirements;
• expanding market presence;
• maintaining and developing common corporate values;
• legal assistance to organizations belonging to the OJSC MMK Group.

Financial performance

Growth in production and a good pricing environment in the domestic market allowed Magnitogorsk Iron and Steel Works to increase its key financial indicators in 2007. The revenue of the MMK group of companies in 2007 increased by 27.6% compared to the previous year and amounted to USD 8,197 million. Operating profit amounted to USD 2,079 million, or 25.4% of the revenue (an increase of 17.8% compared to 2006). The consolidated net profit of the company for 12 months of 2007 increased by 24.3% compared to the same period last year and amounted to USD 1,772 mln. net profit in revenue amounted to 21.6%. EBITDA for 12 months of 2007 amounted to USD 2,342 million or 28.6% of the total revenue. Compared to 12 months of 2006, the company's EBITDA increased by USD 337 million, or 16.8%.

The main strategic goal of OJSC MMK:

Maintaining long-term competitiveness in the global market rolled metal .

The main strategic goal is achieved through the achievement of the following strategic goals:

1. Stimulating all employees to achieve goals based on professional development, involvement in the quality management process, satisfaction with work results and social guarantees.
2. Providing guarantees of efficiency, reliability and liquidity for investors;
3. Reducing harmful effects on the environment.

Development strategy

Mission of OJSC MMK:
“Production and marketing of high quality steel products that meet the needs of our customers, in order to generate sufficient profit to develop the enterprise to the level of a leading global company and conduct a reasonable social policy».
Following the mission of OJSC MMK is possible only if there is a long-term opportunity to produce and sell metal products. Therefore, the main goal of OJSC MMK is to maintain long-term competitiveness in the global rolled metal market.
The main strategic goal is achieved through:

• Conquering leading positions in the development and implementation of new technologies;
• Improving the quality of metal products and mastering new types of products to meet current and future demands and expectations of consumers;
• Preservation and expansion of sales and supply markets;
• Improving production efficiency;
• Reducing harmful effects on the environment;
• Involvement of all employees in the quality management process;
• Stimulating all employees to achieve goals;
• Ensuring social security for the employees of OJSC MMK.

The strategy developed by OJSC MMK to achieve the set goals is being implemented in the following areas of activity:

• Constant all-round development of the company, providing for the replacement of outdated technologies and equipment, the use of existing and newly commissioned modern high-tech, environmentally friendly production facilities with maximum load;
• Achieving higher efficiency in the production of pig iron, steel, rolled products, high value added products;
• Strengthening the market position by improving product quality, conducting marketing research and developing a market strategy;
• Maintaining in the long term the versatility of the assortment (sheet and grade), with the primary focus of the company on the production of sheet products with high added value;
• Creation of comprehensive guarantees for the reliable operation of OJSC MMK;
• Increased production of high-quality cold-rolled sheet, coated sheet, high-grade (IV and V) processed products;
• Introduction of energy-saving technologies and expansion of our own energy base;
• Implementation of an environmental management system in accordance with the international standard ISO 14001-96;
• Improvement of the social climate due to an increase in the level of wages and the availability of an effective package of social programs and guarantees;
• Creation of an integrated financial and industrial structure with the participation of OJSC MMK;
• Acquisition of enterprises that process in significant volumes the products of OJSC MMK or supply raw materials and materials to OJSC MMK;
• Increasing enterprise manageability and information transparency for investors and shareholders.

The investment program of the Magnitogorsk Iron and Steel Works is designed for seven years starting from 2007 and provides for investments in the amount of more than $ 5 billion. Among the main directions of development:

• construction of rolling mill-5000 (completion is expected by 2009, project cost - about $ 1.5 billion);
• construction of new units for hot-dip galvanizing and polymer coatings;
• construction of a convector with a capacity of 2 million tons, a new coke oven battery;
• construction of a new universal cold-rolling mill for the production of high-quality auto sheet (with a capacity of about 2 million tons of sheet per year) and rolled products for rolled products with coatings (commissioning approximately by 2010, the project cost is about $ 1 billion);
• construction in St. Petersburg (Kolpino) of a plant for the production of stamped parts with a capacity of about 300,000 tons of stamped parts per year (estimated cost - about $ 100 million)

The central link of the strategy is the reconstruction of production facilities. In accordance with the investment program developed until 2013, the volume of investments in the modernization of production is more than 1 billion US dollars.

Site
www.mmk.ru

Buffett's score : 7,56 out of 10

OJSC "Magnitogorsk Metallurgical Plant" is a modern highly profitable enterprise, one of the 20 largest steel companies in the world. It is the largest metallurgical complex in Russia with a full production cycle. OJSC MMK manufactures the widest range of metal products among the enterprises of the Russian Federation and the CIS countries. Magnitka is the only Russian manufacturer of high-quality cold-rolled strip and tinplate. In terms of sales volumes, OJSC MMK has the best performance among metallurgical enterprises in Russia. OJSC MMK is located in the very center of Russia, which determines the geography of sales to both the domestic and foreign markets. Magnitogorsk Iron and Steel Works exports about 60% of its products. The export geography includes the states of Southeast Asia, the Middle East, Africa, Eastern Europe and the CIS (the largest consumers of MMK metal in the near abroad are Belarus, Ukraine and Kazakhstan). Long-standing partnerships link OJSC MMK with enterprises and companies from the USA, Canada, Finland and Italy.

2002 was a special year for the metallurgists of Magnitka - an anniversary year. And he, like the previous ones, was marked by hard work at all redistributions of the metallurgical cycle and decent results. The company continued its dynamic development. Over the year, production growth averaged 7%. The end product - finished rolled products - produced 9.7 million tons, 11 million tons of steel were smelted, 9.3 million tons of pig iron, 5.3 million tons of coke and 9.5 million tons of sinter were produced. The products sold for 60 billion rubles against 47 billion in 2001. The company received a profit of about 12 billion rubles against 8 billion in the previous year.

The total number of employees in the existing metallurgical holding as of December 2002 amounted to 68189 people (including their family members, about 200 thousand people, that is, almost half of the city's residents), of which 35102 people are employees of OJSC MMK, 4426 people work at the calibration facility, 43,921 people work at hardware and metallurgical plants, 24,279 people work in other subsidiaries and institutions (1).

As a result, both domestic and foreign specialists are unanimous in opinion: Magnitogorsk Metallurgical Combine is today the leading enterprise in domestic metallurgy. Magnitka's total tax payments last year amounted to almost four billion rubles. The plant has no tax arrears. It is quite natural that the tax authorities issued a certificate of trust to the company.

The success of recent years in the labor collective of the Magnitogorsk Iron and Steel Works is associated with the arrival in 1996 of a new team of managers headed by Viktor Filippovich Rashnikov, who went through his career at the plant from a worker to a general director. Today the general director of OJSC MMK also holds the post of president of the club of the best managers of Russia, which is a confirmation of his managerial skills.

According to directors and members of management teams, the plant has undergone major changes in the organizational and structural plan. The most dramatic changes affected sales, marketing, supplier services, financial and economic services.

In the management of such a large company as OJSC MMK, it is worth highlighting:

Production Management;

Financial and economic management;

Management of commercial matters;

Investment and strategic management;

General Issues Management;

Personnel Management;

Construction management.

Each block is headed by a director or deputy general director. However, for all the importance and necessity of structural changes, the most important condition for MMK's success is the professionalism of managers and competent personnel policy.

Personnel policy is an integral part overall strategy development of OJSC MMK. It is in line with its corporate ideology, culture and is aimed at ensuring the long-term competitiveness of OJSC MMK in the global steel market.

The leaders at all levels of the management hierarchy act as ideologists and guides of personnel policy. Direction directors, heads of departments, chief specialists, heads of structural divisions, together with the Human Resources Department, participate in the selection, assessment and training personnel reserve management personnel.

The personnel policy of the enterprise is built in accordance with the following priorities.

Achievement of international standards in all areas of activity.

Staffing for the production and social development of the enterprise at all levels with highly qualified personnel.

Application of new technologies in personnel development and work with personnel.

Advance development of the personnel potential of OJSC MMK in accordance with the modernization of production and improvement of the management system.

Investing personnel in line with increasing requirements for skills, workplace and production.

Focus on social protection of OJSC MMK's personnel and pensioners, their interests and health.

This personnel policy has paid off. Magnitogorsk Iron and Steel Works won the 2002 competition " Russian organization high social efficiency"In the nomination" Personnel qualifications, the system of their training and retraining. " On this occasion, Deputy Prime Minister of the Russian Federation, Valentina Matvienko said: “The fact that Magnitka was awarded a first-degree diploma in this competition suggests that you are keeping up with the times. Today, enterprises investing in the main thing - in human capital, in education and advanced training of workers, creating working conditions, systems social protection usually get double recoil from production, because social investment very seriously affect the economic efficiency of the enterprise. Today it is obvious that the authorities alone cannot cope with the accumulated heap social problems... Experience shows that they can only be solved with the cooperation of government, business and society through the creation of a so-called system of social partnership. Without her, we will never build market economy oriented towards the charity. Therefore, I welcome the efforts that the Magnitogorsk Iron and Steel Works is making to improve the social climate at the enterprise, taking care of veterans and youth. I believe that thereby the management of the plant looks at the future of its enterprise, not trying to make a profit at any cost, not dooming the enterprise to stagnation in the future ”(2).

The position of the management of the metallurgical giant remains unchanged: “Time has changed, and life itself has changed with it,” says V. Rashnikov, General Director of OJSC MMK. - But the plant and the city continue to remain one, despite the predictions of skeptics and all kinds of critics. The work of the plant is unthinkable without people rushing to its workshops every day. But even its best results lose all meaning if they are achieved for the sake of an abstract benefit that does not benefit people. The construction of hospitals, schools, roads and housing, the maintenance of Palaces of culture, sanatoriums and children's health camps, the creation of a whole system of events designed to improve the lives of Magnitogorsk residents - the capital invested in all this, the capital that works for people and for the sake of people, cannot but pay off handsomely ... For the plant there are no “friends” and “aliens” in Magnitogorsk, because today there is no family in it, whose history, in one way or another, would not be involved in the history of the achievements and victories of the MMK ”(16).

OJSC "Magnitogorsk Metallurgical Plant" is a city-forming and socially oriented enterprise.

The social policy of the Magnitogorsk Metallurgical Combine is a vast layer, a huge field of application of forces. It includes several areas of activity at once. This is the creation of conditions for employees and members of their families to resolve all life issues, and targeted social support for veterans, disabled people, large families and other low-income categories, and the provision of services to residents of the city and surrounding areas by facilities of the social sphere of OJSC MMK, and sponsorship, and charitable assistance to public associations, various organizations of education, health care, culture, sports and other spheres of public life, and participation in the development of the environment.

Until recently, Magnitogorsk was one of the cities with the most unfavorable ecology. But now a lot has changed. This happened primarily because the plant understood in time: the only and most effective direction for improving the environment is the technical re-equipment of the enterprise with the replacement of existing production processes on low-waste and non-waste technologies, the introduction of new, modern treatment plants and the reconstruction of existing ones. The commissioning of the oxygen-converter shop made it possible to close most of the open-hearth furnaces, which are the most harmful to the environment. Many blast furnaces, sinter plants, and coke oven batteries were shut down or modernized.

A special role was played by the construction of Europe's largest complex coke oven gas treatment plant, due to which the amount of harmful emissions immediately decreased by 20 thousand tons per year. Moreover, the emission of the most harmful substances that cause cancer was reduced by 7090. The construction of the workshop cost $ 200 million. In general, MMK's environmental expenditures amount to over RUB 800 million annually. All this did not hesitate to affect the ecological situation in Magnitogorsk. The amount of harmful emissions for last years decreased by 4 times.

The social policy of OJSC MMK is based on the following principles and directions:

Creation of conditions for employees and their families to solve all life issues, including improving housing conditions, treatment and medical care, health improvement and recreation, cultural services with festive events, mass sports and physical education, funeral services, providing the opportunity to purchase high-quality food products and the entire range of consumer goods using non-cash payments in the city's retail network using "credit" plastic cards;

“Targeted” social support for veterans, disabled people, large families and other low-income categories through the Metallurg charitable public foundation created by OJSC MMK and using social facilities financed by OJSC MMK;

Provision of services by objects of the social sphere of OJSC MMK to residents of the city and neighboring districts of the Chelyabinsk region and the Republic of Bashkortostan;

Support and charitable assistance to public associations working with people with disabilities, children and different categories the needy, with other segments of the city's population;

Charitable assistance and sponsorship to various organizations of education, health care, culture, sports and other spheres of public life in holding various cultural and sports festivals and memorials.

The social policy at OJSC MMK is implemented by the department of social programs, the trade union committee, the Klyuch housing and investment fund, the Union of Young Metallurgists, the Council of Veterans, the Metallurg Foundation and other public organizations and movements. Each organization has specific tasks and its own field of activity. But, often carrying out different projects, associations work together, corporately. This vividly demonstrates the fulfillment youth program developed at OJSC MMK, which is carried out by the trade union committee, personnel management, public association"Union of Young Metallurgists", the Council of Young Specialists and the Council of the Combine Veterans. Financing of the program "Youth of OJSC MMK" is carried out by the trade union committee and the administration of the plant. And one more example - the department of social programs is one of the main management services of the plant, which prepares the text of the collective agreement for each year and, together with the trade union committee, develops normative documents on the implementation of the provisions of the collective agreement and control over its implementation during the entire period of validity.

The trade union committee sums up the results of the implementation of the collective agreement of OJSC MMK. This document sets forth the obligation of the administration of the enterprise to increase the average wage. MMK's management fulfills this obligation. If in January 2002 the average salary at OJSC MMK was 7124 rubles, then in August it was 9420 rubles. An increase in wages is also noted at the subsidiaries of the plant: from 6,640 rubles in January to 8,500 rubles in the middle of the year. At the same time, the growth of wages outstrips the rate of inflation, and the real incomes of workers are 1.5 times higher than the average consumer budget. Salaries are paid on time and in full.

With the support of the trade union committee, the workshops operate a system of elected OSH commissioners who regularly undergo training and certification. An annual review competition on labor safety and reduction industrial injuries for the title of "Best Occupational Safety Commissioner". All this leads to a decrease in occupational injuries. Since 1998, the number of injuries at the plant has almost halved.

Also, the priority areas in the work of the trade union committee are:

Social support for large families, families with disabled children, parents of soldiers who have suffered in "hot spots";

Work with youth, carried out jointly with the "Union of Young Metallurgists";

Recreation and recreation of metallurgists and their families;

Mass sports, work;

Carrying out cultural events;

Support for horticultural associations.

The mutual assistance fund operates under the supervision of the trade union committee. Employees of the plant, its subsidiaries and institutions have the opportunity to receive repayable loans in it.

The MMK trade union organization was established on June 26, 1931. Then it numbered 5,000 people, and today it has more than 90 thousand employees. The trade union committee of OJSC MMK is one of the largest trade union committees in the region.

The department of social programs, which was established in 1993, coordinates the work of all services of the plant for the implementation of social programs within the framework of the social policy of OJSC MMK. He is entrusted with the functions of development, development and maintenance of social programs. At present, it is headed by Alexander Mastruev, who believes: “Magnitka is famous not only for the colossal amount and high quality of the metal produced, which, as you know, is the bread of the industry. It is of no less importance for today's Russia, with its market changes, as a model of a pronounced social orientation of the economy. "

The tasks of the department of social programs include:

Creation of conditions allowing to soften, facilitate the adaptation of workers of the plant, non-working pensioners to life in market conditions with insufficient social guarantees and support at the state level;

A gradual restructuring of the psychology of workers from beneficiaries of benefits and benefits to earning funds to meet their vital needs with the creation of conditions for choosing priorities by the employer through measures to support socially significant areas of life for the work collective and the individual employee;

Development and implementation of measures to work with the labor collective by its representatives represented by the trade union organization on the principles of social partnership, the formation of a corporate ideology.

Since the mid-90s, housing construction and city development have practically ceased in Magnitogorsk due to a lack of funds from industrial enterprises, city administration and residents.

Anticipating this situation, OJSC MMK created the Klyuch housing and investment fund. Reducing the ability of the plant to invest from profits in housing construction and the provision of free housing to workers forced to look for schemes that are affordable for workers and less burdensome for the joint-stock company to solve the housing problem. The Social Programs Division was actively involved in the development of the housing program.

From 1996 to 2001, 215718 square meters of housing were built, which made it possible to improve the living conditions of more than 2500 families of workers of the plant and subsidiaries. During this period, the following scheme was used: ZhIF "Klyuch" accumulates funds of developers in the form of their cash and borrowed funds provided to them by the plant on an interest-free basis, and directs them to the construction of housing. The amount of borrowed funds and repayment periods (from 3 to 10 years) are determined depending on the degree of the employee's need for improving housing conditions and on the employee's income level. During this period, borrowed funds were provided to employees in the amount of over 280 million rubles. For the plant and for workers in the transition period from free housing, such a scheme was optimal, but a major distraction working capital has become quite burdensome for the plant. Changes in legislation have led to a decrease in the profitability of using borrowed funds on preferential terms. Therefore, the search for new forms, sources and schemes for solving the housing problem continued. At present, a transition has been made to the use of bank credit resources under the guarantee of OJSC MMK. Employees buy apartments under contracts equity participation in the construction of housing with payment by installments up to 9 years. At the same time, a program of mortgage lending for employees is being developed using MMK's short-term surety.

Currently, the development of a program for the creation of a credit and consumer cooperative of citizens from among the workers of the plant is being completed in order to create monetary resources through the accumulation of funds to improve housing conditions and, due to this, provide targeted loans to members of the cooperative. As the cooperative develops, it is planned to create an association of such cooperatives, which will be able to build new houses and even housing complexes.

By the decree of the Presidium of the Supreme Soviet of the USSR of September 30, 1943 for exemplary fulfillment of the tasks of the State Defense Committee to provide the military industry with high-quality metal. Stalin of the People's Commissariat of Ferrous Metallurgy of the USSR was awarded the Order of Lenin
By the decree of the Presidium of the Supreme Soviet of March 31, 1945, the Magnitogorsk Order of Lenin Metallurgical Plant named after Stalin was awarded the Order of the Red Banner of Labor for the successful fulfillment of the tasks of the State Defense Committee to provide the military industry with high-quality and high-quality metal
By the decree of the Presidium of the Supreme Soviet of the USSR of January 4, 1971, for the exemplary fulfillment by the collective of the plant of tasks to provide the national economy with metal and the achievement of high technical and economic indicators, the Magnitogorsk Metallurgical Plant named after V.I. Lenin of the Ministry of Ferrous Metallurgy of the USSR was awarded the Order of Lenin
By the decree of the Presidium of the Supreme Soviet of the USSR of January 28, 1982, for great services in the development of ferrous metallurgy, the achievement of high technical and economic indicators and the successful fulfillment of socialist obligations in the tenth five-year plan, the Magnitogorsk Metallurgical Plant named after V.I. Lenin of the Ministry of Ferrous Metallurgy of the USSR was awarded the Order of the October Revolution
By the Decree of the Russian Public Commission No. 7 of December 17, 2001 for outstanding services and achievements in the development of the economy, contributing to the prosperity, glory and greatness of Russia, OJSC "Magnitogorsk Metallurgical Plant" was awarded the Order of Peter the Great

History and activity

Magnitogorsk Iron and Steel Works today is a modern highly profitable enterprise, one of the 20 largest steel companies in the world. It is the largest metallurgical complex in Russia with a full production cycle.

OJSC MMK produces the widest range of metal products among the enterprises of the Russian Federation and the CIS countries. Magnitka is the only Russian manufacturer of high-quality cold-rolled strip and tinplate. In terms of sales volumes, OJSC "MMK" has the best indicators among metallurgical enterprises in Russia.

June 1743. On the banks of the Yaik River, now the Ural, the Magnitnaya fortress was founded.

1747 year. Ore workers of the industrialist I.B. Tverdyshev carried out a digging on the Magnitnaya mountain, as a result of which the breeder announces that he has found a mine "near the Yaik River, following the example of the distance from it in eight versts, also from the mouth of the Verkhniy Kizilu River, eight versts to the mountain called Atichi. in three places. "

The year is 1759. Ore mining has begun on Mount Magnitnaya for a plant built on the Tirlyanka River. 1912 year. After the laying of the first 12 wells and new research, Professor A.I. Zavaritsky reveals 87 million tons of high-quality iron ore on Magnitnaya Mountain.

1917 year. First magnetometric survey of Magnetic Mountain.

January 1929. At a joint meeting of the USSR Council of People's Commissars and the Labor and Defense Council, a decision was made to start the construction of the Magnitogorsk Metallurgical Plant. By order of the Supreme Council of the National Economy of the USSR, Magnitostroy was created - the largest construction project in the Soviet Union. March 10, 1929. The first builders arrived at the Magnetic Mountain. June 30, 1929. The first train arrived at the Magnitogorskaya station. From now on, this date is considered the birthday of the city of Magnitogorsk. July 1, 1930. 14 thousand workers at the construction site of the Magnitogorsk metallurgical giant laid the foundation for the 1st blast furnace.

November 1, 1930 The construction of the dam has been completed. The workers put in over 30 thousand cubic meters of concrete and built a kilometer-long overpass in a shock period. October 23, 1931. The central power station with a final capacity of 248 thousand kilowatts gave the first electrical energy to Magnitogorsk. The construction of Magnitka rallied 40 thousand people, creating the flagship of the domestic metallurgy. December 28, 1931. Battery No. 3 of the coke-chemical plant produced the first coke. Contrary to the calculations of American specialists who were trying to prove that the construction of this production would take more than two years, the construction took less than a year.

February 1, 1932. Blast furnace # 1 produced the first pig iron. This day went down in history as the birthday of the Magnitogorsk Iron and Steel Works. June 1932. The first cast iron was produced by Blast Furnace No. 2, the legendary "Komsomolskaya Pravda" (Komsomolskaya Pravda). The annual productivity of the first stage of Magnitka was supposed to be about 4 million tons of metal - three times more than that produced in the Urals in 1930. The number of residents of Magnitogorsk exceeded 200 thousand people.

August 26, 1532 - One of the first sound cinemas in the Urals, Magnit, was opened in Magnitogorsk. September 1, 1932. First classes at the Magnitogorsk Mining and Metallurgical Institute. The forging shop was put into operation. A crushing plant was commissioned at the Magnitnaya Mountain mine. July 5, 1933. The first steel melting was produced at the open-hearth furnace No. 1. 1933 year. Three open-hearth furnaces were put into operation, the 4th blast furnace was blown out, blooming No. 2 began to work. August 5, 1934. The first section rolling mill "500" in Magnitka was put into operation. With the launch of this unit, MMK became major supplier long products and turned into a metallurgical enterprise with a complete metallurgical cycle.

1934 year. The first melts were produced on three new open-hearth furnaces. By the end of the year, 32 thousand people studied at universities, technical schools and evening schools in Magnitogorsk. 1935 year. Three more open-hearth furnaces were commissioned. The general plan of the city on the right bank of the Ural River was approved. 1936 - 1940. Five open-hearth furnaces were put into operation. Construction of a super-powerful blast furnace No. 5 has begun.

July 1941. The first armored steel of Magnitka was melted at the open-hearth furnace No. 3. For the first time in the history of world metallurgy, an armor plate was rolled at blooming # 3. 1941 year. The most powerful in the USSR thick-walled armored camp "4500", evacuated from Mariupol, was commissioned. By the end of the year, 3638 women had been replaced at the combine for their husbands, brothers, fathers, who had gone to the front. The first one of this kind was melted in an open-hearth furnace No. 18. 1943 year. The open-hearth furnaces of Magnitka mastered the production of high-quality, armor-piercing steel. The country's largest blast furnace No. 6 was commissioned. 1947 year. The Magnitogorsk Rolling Mill "300" became the country's first comprehensively automated unit of this type.

1951 year. The broadband rolling mill "1450" was put into operation, consisting of two mills: rolling mill-2 - hot and rolling mill-2 - cold rolling. 1954 - Three open-hearth furnaces were put into operation. 1956 - The shop for galvanized sewing tableware was put into operation. The five-stand mill was put into operation. Sheet-rolling shop No. 3 is ready to start-up. 1959 year. A slabbing plant, one of the largest in the world in terms of its capacity, was put into operation. Two open-hearth furnaces were commissioned.

1960 The first sheet was delivered at the 2500 hot rolling mill. The first open-hearth steel was smelted in two new furnaces. 1961 - 1963. A new blast furnace slag granulation unit was put into operation. A mold shop was put into operation. Two open-hearth furnaces were built and Blast furnace No. 9 was built taking into account the latest achievements of science and technology. 1969 year. The sheet-rolling shop No. 5 was put into operation.

1972 year. The first stage of the new mine of the Maly Kuzbass Combine with a capacity of 1,700 thousand tons of ore per year was put into operation. 1979 year. LPC-6 issued the country the first million of thin electrolytic tin plate. 1981 year. A coke oven battery "8-bis" with a capacity of 1 million tons of coke per year was put into operation. 1982 year. On Victory Square there is a monument "Tank" with the inscription: "During the war, every second tank and every third shell were made of Magnitogorsk steel." November 14, 1985. The first group of regional Komsomol envoys arrived at the All-Union shock Komsomol construction site - an oxygen-converter shop. April 17, 1986. The first cubic meter of concrete was laid in the foundation of the oxygen-converter shop. But MMK started the last construction, carried out with state budget money. 1987 year. The MMK team switched to full cost accounting and self-financing. The construction of the 2000 hot rolling mill LPC-10 has begun.

November 2, 1990. The first steel was welded in the oxygen-converter shop of MMK. May 21, 1994. The first steel paste was produced on the roughing claw group of the 2000 hot rolling mill. The sheet-rolling shop No. 10 began its work. October 14, 1994. Mill 2000 was put into operation. August 15, 1995. CJSC "Yuzhuralavtoban" is being created, which carries out complex repairs and construction of highways both in the Chelyabinsk region and beyond. September 12, 1995. CJSC "Complex of new technologies" was established, the main task of which is the production of products of the fifth and sixth redistribution. June 15, 1996. The first rolling rolls for the shops of the metallurgical complex were cast in the mold shop on the new DSP-12 electric furnace.

August 1997. Steelmakers of Magnitka for the first time in world practice smelted armor steel in a converter. 1998 year. The first stage of the coke oven gas capture and processing workshop was launched at MMK's coke-chemical plant. The largest in the world in terms of gas processing - 240 cubic meters per hour. Air emissions decreased by 20 thousand tons per year. The most harmful emissions will be reduced by three quarters. After the reconstruction, blast furnace No. 1 was put into operation, the capacity of which increased to 3000 tons of pig iron per day. May 14, 1999. The ceremonial commissioning of the second stage of the CCP recovery shop took place. Technological process this workshop is fully automated. November 6, 1999. The first steel was smelted at converter # 3 of the oxygen-converter coke of MMK. The start-up of coke oven battery N-1 took place, which was stopped for repairs in 1992 and subjected to "cold" storage.

January 2000. CJSC "Complex of deep processing" is being created, which produces road fences, bent profiles, oil, gas and water pipes, cold-rolled galvanized steel tape and much more. March 5, 2000. The presentation of the first bond issue of OJSC MMK took place in the President Hotel in Moscow. Magnitka entered the stock market. June 2000. The rotary kiln No. 4 IDI, the first stage of the shop for the production of magnesia-dolomite refractories, completely renewed, with improved metal heating technology, blast furnace No. 2, the famous "Komsomolskaya Pravda", the "ladle furnace" unit of the oxygen-converter shop were put into operation. September 1, 2000. Outdated shaft furnaces No. 1 and No. 2 of lime-dolomite production, which had been operating since 1934, were taken out of service. With the closure of these furnaces, the gross emission of harmful substances into the environment has been reduced by 6 thousand tons annually. November 2000. A new hot-rolling wire mill No. 3 "Kacks" is being built in the section shop. April 2001. The construction of a double-stand reversing cold rolling mill for steel sheet was started.

Magnitogorsk Iron and Steel Works exports about 60% of its products. Outside the country, the products of the oxygen-converter shop, section mills and practically all sheet shops are marketed.

The export geography includes the states of Southeast Asia, the Middle East, Africa, Eastern Europe and the CIS (Belarus, Ukraine and Kazakhstan are the largest consumers of MMK metal in the near abroad). Long-standing partnerships link OJSC "MMK" with enterprises and companies from the USA, Canada, Finland and Italy. The export structure is constantly changing towards an increase in sales of finished products.

MMK has been and remains a socially oriented enterprise, where care is constantly shown not only for the material well-being of employees, but also for improving the recreation industry and improving the health of workers. At the disposal of metallurgists and their families are sports and recreation centers, comfortable sanatoriums and boarding houses located in uniquely beautiful corners of nature, four children's health camps.

Thanks to OJSC "MMK" in recent years, an athletics arena, an Ice Palace, a children's Ice Palace, a sports and recreation center, a children's pool, a ski center "Abzakovo" have been built in Magnitogorsk, which significantly contributed not only to the popularization physical culture and sports, but also made a significant contribution to the development of the city's infrastructure.

Over the past decade, the hockey club has been one of the leaders in domestic hockey.

The firstborn of the five-year plans, the country's armor shield, the giant of the Soviet industry, the flagship of the domestic metallurgy, the "trendsetter" in the metallurgical industry - this is all about MMK. His records conquered the whole world: his very appearance from scratch in the shortest possible time became the main achievement.

Reference Information:

• Company name: PJSC "MAGNITOGORSK STEEL WORKS";
• Legal form of activity: public joint stock company from May 26, 2017;
• Kind of activity: production and sale of ferrous metallurgy products;
• Revenue for 2016:$ 5,630 million;
• Beneficiary: Viktor Rashnikov, Chairman of the Board of Directors;
• Number of personnel for 2016: 18,077 people;
• The site of the company: http://mmk.ru/

In February of this year, the Magnitogorsk Metallurgical Combine, the city-forming enterprise of Magnitka, one of the most famous, constituting the industrial heritage of the USSR, received congratulations on its anniversary. Exactly 85 years ago, on February 1, 1932, the first blast furnace produced the first cast iron. It was this day that began to be considered MMK's birthday. There was not a single person in the Soviet Union who did not know about this firstborn of the first five-year plans and the symbol of Soviet industrialization.

The history of MMK (Magnitka is a more familiar name) is a real "phenomenon" in the history of the country. The wilderness of the Ural steppe - and the giant of the Soviet industry, which rose from scratch in record time, solely thanks to the dedication of thousands of first builders. That was incredible. No one in the world believed that this was possible. As they did not believe later, when the combine took only a month to organize the production of armored steel for the country at war with the Nazis.

“Since the launch of the first blast furnace at Magnitka to date, MMK has produced over 430 million tonnes of ore, produced over 700 million tonnes of sinter, 614 million tonnes of pig iron, 791 million tonnes of steel and 633 million tonnes of commercial metal products. If all the steel smelted in 85 years of Magnitka is presented in the form of a sheet with a thickness of 0.5 mm, then they could cover an area of ​​about 200 thousand square meters. km. This is more than the territory of countries such as Belgium, the Netherlands, Austria and Switzerland combined. "

Metal from Magnitka to this day serves in DneproGES, Baikonur, gas pipelines and oil pipelines. MMK has always remained and remains the flagship of the domestic ferrous metallurgy and is proud of people who have repeatedly demonstrated their unyielding character throughout the history of the plant's existence.

How Magnetic Mountain Conquered

Both the city of Magnitogorsk and the plant owe their birth to that mountain (and the name too). The unique accumulation of iron ores in a small area, according to the first estimates of experts, amounted to about half a billion tons of high-grade iron ore with an iron content of up to 70%, and most importantly, it was shallow, and in places came to the surface.

They say that the Magnitnaya fortress, Orenburg governor I.I. Neplyuev founded in 1743 solely for the purpose of protecting the mountain from unauthorized attempts to extract ore. In the vicinity of the mountain, Pugachev fought with the tsarist army, and the fortress itself, by the way, even served as a base for the Pugachev rebels.

When, a century later, the government commission headed by D.I. Mendeleev, surveyed the mountain in 1899 and made the necessary calculations, the estimated ore reserves amounted to 1 billion poods, although a little later, more detailed calculations made it possible to triple this value.

The same Dmitry Ivanovich has repeatedly pointed out that it is much more expedient to organize the production of pig iron using coal as the main fuel for metallurgical production. He said that it was very important to build large blast furnaces capable of smelting pig iron much cheaper using mineral fuel delivered from Western Siberia, where deposits were discovered. coal... Siberian Railway passed very close. For the iron business in the Urals, this could be a real impetus.

Only the ineradicable Russian bureaucracy did not allow this idea to be realized. Until the October Revolution itself, it was not possible to combine Siberian coal and the Ural iron ore.

In May 1925, in Sverdlovsk, they began designing the Magnitogorsk plant near Magnitnaya Mountain, which, according to the plans of the young Soviet government, was destined to become the largest metallurgical plant in the country. Four years later, construction began on the territory of the Chelyabinsk region.

Even the most difficult conditions in which the first builders of Magnitka had to work did not prevent them from starting ore mining already in August 1929. Ore from the Magnitnaya Mountain was sent to the Ural factories.

By the beginning of 1931, the blast furnace, open-hearth and rolling shops had already been erected, a little later a refractory shop was put into operation, the 1st blast furnace was put into drying, the first current was supplied by the central power station, and on February 1, 1931, Magnitka produced the first cast iron. Her birth took place. Blast furnace # 2 produced pig iron in the summer.

The plant developed rapidly. Only one year has passed, and two more blast furnaces, four open-hearth furnaces have already been launched. Steel is smelted at Magnitogorsk. And with the launch of the 500 section rolling mill in 1934, the plant became an enterprise with a complete metallurgical cycle.

World history has never known examples of the construction of such a grandiose industrial facility in such a short time, when the technical capabilities are minimal.

This largest domestic metallurgical enterprise was destined to become a real armor shield during the Great patriotic war... Geographic remoteness from hostilities also contributed a lot to this.

From the first days of the war, MMK lived and worked for the front, for victory.

To fulfill complex military orders, it took a radical restructuring of production. The metallurgists had to adapt the furnaces for smelting armor steel. All over the world this was done in low-tonnage open-hearth furnaces with a "sour hearth", so this technology was now urgently mastered at MMK. A month after the start of the war, they were able to obtain the first armor steel. Moreover, residents of Magnitogorsk created new technology its smelting in large open-hearth furnaces with a main hearth than in the metallurgy of high-quality steel literally revolutionized.

The shop for the heat treatment of armor was also erected at an accelerated pace, he received the first armor plates already in September 41st.

Magnitka became the country's military arsenal, producing also shells, hand grenades, parts for rockets and other defense products.

New production units were built and commissioned:

• open-hearth furnace No. 19;
• mill "2350" from Zaporozhye;
• coke oven battery;
• blast furnaces No. 5 and No. 6.

We can safely say that over the years, a whole plant with a complete metallurgical cycle has been built and mastered at Magnitka. During the war years, every third shell was produced from Magnitogorsk steel, the armor of every second Soviet tank.

And in the post-war years ... the "trendsetter" in the ferrous metallurgy

Steel production continued to grow at a rapid pace. During the first twenty post-war years, MMK put into operation 14 open-hearth and 4 blast furnaces, 6 rolling shops and the same number of coke oven batteries.

Magnitka even in many ways was the "trendsetter" in the industry:

In the mid-1970s, the plant produced 15 million tonnes of steel and 12 million tonnes of finished rolled products per year. Production remained at about the same level for several more years. And in 1989, Magnitka reached a record figure of 16 million tons of steel per year.

Into a market economy

The collapse of the Union, entry into the market for the plant could not but have Negative consequences... In 1992, the Magnitogorsk Combine becomes a joint stock company. the main objective what stands in front of him is the reconstruction and modernization of production. There is no other way. Fixed assets are worn out, technologies are already outdated by that time. The converter complex alone fully met the requirements of modern metallurgical technologies. And still, by the mid-90s, production volumes were far from record-breaking. Why MMK, there is an economic recession throughout the country, and most of the large consumers of metal are on the verge of stopping. First of all, this concerned the machine-building and defense complexes.

In the late nineties, a grandiose recovery began at MMK.

1. A large-scale investment program was developed aimed at technical re-equipment.

   It took a whole fifteen years until modern production complexes started operating at the plant, allowing for the production of products that could compete in the domestic and foreign markets.

   During this time, metallurgists abandoned the open-hearth method of steelmaking, all steel-making facilities were renewed, the section-rolling production was completely reconstructed, galvanized and polymer-coated rolled metal products are produced on high-performance modern units.

   The measures taken have significantly improved the environmental situation in the city.

   1997 was a turning point for Magnitogorsk. The plant achieved an increase in steel production, and in the following years the volume of production gradually increased.

2. The implementation of the integration policy became another direction in which the plant developed. Since 2002, MMK has owned controlling stakes in the calibration and hardware and metallurgical plants in Magnitogorsk. Due to their merger, the country's hardware industry acquired a large OJSC “Magnitogorsk hardware and calibration plant“ MMK-METIZ ”.

MMK does not stop expanding and creating its own raw material base due to the entry into the Group of the Belon coal company and the Profit company specializing in the supply of scrap metal.

In addition, the plant is implementing some of its projects outside of Magnitka. A stamped auto components plant was built in Kolpino, and a metallurgical complex MMK Metalurji was built in the Turkish Republic.

Any of the projects implemented by MMK is another step towards strengthening competitiveness and sustainable development.

"In accordance with new edition Of the Charter as of June 5, 2017, the full corporate name of MMK in Russian is the Public Joint Stock Company Magnitogorsk Iron and Steel Works, the abbreviated corporate name is PJSC MMK; full corporate name of the joint stock company on English language is the Public Joint Stock Company Magnitogorsk Iron & Steel Works, with an abbreviated corporate name - PJSC MMK. "

MMK Group is a highly efficient Russian metallurgical company that holds a leading position among the industry's enterprises. It is one of the thirty largest steel producers in the world, ensuring compliance with high environmental and health and safety standards. MMK does not give up its positions in the domestic market of rolled metal producers either, having consistently remained in the top three in recent years with a production volume of 17.5% in the company with NMLK (17.5) and Severstal (15.3). It is the only manufacturer of tinplate in the country.