Public Joint Stock Magnitogorsk Iron & Steel Works : MMK Industrial Park Leads in Russian Investment Appeal Rating

The Expert-Ural Rating Agency has ranked MMK Industrial Park second in the category of "Sites located within 250 km of economic growth centres" in its annual assessment of the investment appeal of Russia's industrial parks and special economic zones. This is the sixth consecutive year that Expert-Ural has been compiling the rating, which assesses the attractiveness of sites for potential investors based on two independent parameters: the level of customer focus of the site's management and the site's investment potential.

Over the six years of its existence, MMK Industrial Park has achieved the highest score in terms of customer focus in Russia, which is a key element of MMK Group's development strategy.

Pavel Shilyaev, CEO of MMK, commented:

"We see the Industrial Park as an effective tool for the support and development of medium and small businesses in the South Urals region, as well as an opportunity to attract human capital and provide people with alternative growth trajectories. Today, what is particularly important is that it is also an instrument for replacing imported materials, parts and equipment with those produced domestically, including for ferrous metallurgy enterprises."

At present, 37 legal entities are operating on the site of the Industrial Park, including 20 residents that are engaged in industrial production. The park has been accredited by the Russian Ministry of Industry and Trade, which enables investors to enjoy a number of tax benefits. These include zero property and transport tax rates, as well as a 3.5% reduction in the regional component of the corporate income tax rate.

In 2021, product shipments by Industrial Park residents increased by 23% to more than RUB 3.7 billion. This figure has been growing steadily since the Industrial Park's launch in 2016. Investment in production development totalled RUB 247 million. Altogether, residents have invested almost RUB 1 billion in their development since 2016, which shows a high degree of trust in MMK's management and confidence in future growth prospects.

During 2021, the Park generated 21 new jobs, bringing the total to 948 jobs on the site to date. Employment is increasing annually as new residents come in and existing ones expand. The park saw its residents pay a total of RUB 238 million in taxes, an increase of 25% from 2020. This positive trend confirms the stable development of resident companies that are thriving in a comfortable environment, thanks in part to a system of regional and municipal incentives implemented in 2016.

Vladimir Dremov, CEO of MMK Industrial Park, noted:

"To come in second place among best industrial parks located within 250 kilometres of an economic growth centre is a well-deserved assessment of the dedicated work of our entire team here at MMK Industrial Park. In addition, it is yet another confirmation that we are on the right track, and we intend to follow this course in the future."

MMK Industrial Park is a subsidiary of MMK and OJSC MMK-METIZ. The Park was established in 2016 on the industrial site of the former calibration plant. MMK's management granted the vacated area of the former plant to residents willing to develop an industrial business. The total area of the complex spans 65 hectares, featuring well-developed engineering infrastructure and a railway network, as well as all the necessary conditions for the rapid start-up of almost any new production facility.