Russia’s Magnitogorsk Iron and Steel Works resumes production in Turkey due to improvement of business climate

Magnitogorsk Iron and Steel Works. Photo: NTZMK

Magnitogorsk Iron and Steel Works (MMK), one of Russia’s largest iron and steel companies is resuming steel production in Turkey at its MMK Metalurji plant, according to the company.

 

The company's investments in restarting production amounted to about $40 million. The annual production of hot-rolled steel at the site in the Turkish city of Iskenderun will amount to about 2 million tons; by the end of this year, 200,000-260,000 tons will be produced. As the company explained to the Russian Vedomosti business paper, the production will begin in July, full capacity is scheduled for nine months.

 

By the end of 2020, MMK Group produced 11.6 million tonnes of steel, 7% less than the year before last. This year, the group planned to increase production to 12 million tons (excluding the plant in Turkey).

 

MMK Metalurji is a metallurgical complex that includes an electric steel-making shop, a cold rolling mill, a service metal center and a seaport capable of receiving ships with a displacement of up to 100,000 tons.

 

Electric steelmaking production at MMK Metalurji was stopped in 2012 due to unfavorable conditions: expensive energy resources and raw materials and low prices for metallurgical products. All this time, the Russian metallurgical group produced at the Turkish plant only the most marginal products - galvanized steel and polymer-coated rolled steel from finished steel coils, which were supplied, among other things, from other MMK enterprises.

By: Eugen Gerden