PJSC Magnitogorsk Iron and Steel Works (MMK)
PJSC Magnitogorsk Iron and Steel Works: MMK Metalurji resumes operation of its hot rolling complex in Turkey
12-Jul-2021 / 11:57 CET/CEST
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PJSC Magnitogorsk Iron & Steel Works ("MMK", or "the Group") (MICEX-RTS: MAGN; LSE: MMK), one of
the world's largest steel producers, announces that MMK Metalurji, an asset of MMK in Turkey,
has started hot tests at its electric arc furnace facility with a casting and rolling module.
Annual production of hot-rolled coils at MMK's Turkish production site amounts to about two
million tonnes.
MMK has begun the first phase of hot testing of technological equipment at its electric arc
furnace facility in Turkey, which was halted in 2012 due to unfavourable economic conditions in
the Turkish market. Upon completion of tests, the complex, intended for the production of
MMK Metalurji resumes hot-rolled coils, will resume its work in full.
operation of its hot
rolling complex in "The decision to suspend hot-rolled production at MMK Metalurji's site in Iskenderun was based
Turkey on economic efficiency considerations. At that time, the situation in the Turkish market was
characterised by high prices for raw materials and energy resources and low prices for steel
products. The current situation allows us to resume operations at the electric arc furnace
facility, which is a very important component of our Turkish asset," said Viktor Rashnikov,
12 july 2021 Chairman of the MMK Board of Directors.
Magnitogorsk, Russia "We invested about USD40 million to restart this production facility. After restarting the hot
section and reaching its full capacity, we plan to produce about two million tonnes of
hot-rolled coils per year, which will allow our Turkish asset to gain a significant increase in
EBITDA," commented Pavel Shilyaev, CEO of MMK.
The phased launch of the electric arc furnace facility with a casting and rolling module at MMK
Metalurji's industrial site in Iskenderun implies a gradual increase in production. In total, it
is planned that the site will produce 200-260 thousand tonnes of hot-rolled steel in 2021, with
the unit reaching full capacity in 2022.
MMK Metalurji (an asset of the MMK Group), a modern steelmaking complex in Turkey, operates an
electric arc furnace facility with a casting and rolling module, a cold-rolling mill,
galvanizing and color coating lines, as well as two service centres in Iskenderun and Istanbul.
The Iskenderun production site also features a sea port that can accommodate ships of up to
100,000 deadweight tonnage (dwt) and is used to supply raw and input materials to the plant as
well as ship products to customers.
About MMK
MMK is one of the world's largest steel producers and a leading Russian metals company.
The Group'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
premium products. In 2020, MMK produced 11.6 mln tonnes of crude steel and sold 10.8 mln Subscribe to our official MMK
tonnes of commercial steel products. channel in Telegram, to be
the first to know about key
??K is an industry leader in terms of production costs and margins. Group revenue in 2020 MMK news.
totalled USD 6,395 mln, with an EBITDA of USD 1,492 mln. MMK boasts the industry's lowest
debt burden. Net debt/EBITDA ratio was -0.06? at the end of 2020. The Group's
investment-grade rating is confirmed by the leading global rating agencies Fitch, Moody's
and S&P.
MMK's ordinary shares are traded on the Moscow Exchange, while its depositary receipts
are traded on the London Stock Exchange. Free float amounts to 18.7%.
KEY UPCOMING EVENTS IN 2021
Investor Relations Department
Financial calendar
Veronika Kryachko
+7 (915) 380-62-66
kryachko.vs@mmk.ru
14 July Q2 and 6M 2021 Trading Update
22 July Q2 and 6M 2021 IFRS financials
ESG DEPARTMENT
Virtual conference for retail investors,
Yaroslava Vrubel 27 July
+7 982 282 9682 VTB Capital
vrubel.ys@mmk.ru
28-29 July Non-deal roadshow (NDR), online
Communications Department Dmitriy Kuchumov +7 (499) 238-26-13 kuchumov.do@mmk.ru Oleg Egorov +7 (499) 238-26-13 egorov.oa@mmk.ru -----------------------------------------------------------------------------------------------------------------------
ISIN: US5591892048
Category Code: UPD
TIDM: MMK
LEI Code: 253400XSJ4C01YMCXG44
Sequence No.: 116803
EQS News ID: 1217500
End of Announcement EQS News Service
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July 12, 2021 05:57 ET (09:57 GMT)