OJSC “Magnitogorsk iron and steel works” (“MMK”)

Magnitogorsk Steel owns the biggest single-site steel mill in Russia with crude steel capacity of 14 mln tpy. The company’s output mix is geared toward coils and plate, with a significant proportion of value-added products. Magnitogorsk Steel is a key supplier for Russian pipe producers and carmakers, and enjoys a high percentage of domestic sales. The consolidation of Belon at end 2009 was a major step toward stronger vertical integration, providing Magnitogorsk Steel with 45% self-sufficiency in coking coal. The company has also been investing in iron ore assets and plans to further increase self-coverage in the ore, possibly via development of the giant Prioskolsky deposit. Construction of a new wide-gauge plate-rolling mill (Mill-5,000) was the company’s latest major achievement, which enabled it to deliver a significant increase in sales volumes in 2010. Overseas, the steelmaker is continuing to build a new sheet mini-mill in Turkey in alliance with local partner Atakas Group.