Magnitogorsk Hardware and Metallurgical Plant MMK-METIZ

The formation in 2003 of the management company MMK-METIZ was a continuation of the integration policy begun at the Magnitogorsk Iron and Steel Works, the main strategic partner of the hardware and calibration production in Magnitogorsk. The management company, created to solve the problem of coordinating the activities of the metal-smelting and calibration plants, was vested with the powers of a single executive body of the two plants. This combination of a single sales and pricing policy, production strategy, allowed the labor teams of MMMZ and MKZ to cease to perceive each other as competitors. Redistribution of the product mix, reorganization of sales and financial activities, and optimization of production costs were carried out. This led to an increase in the efficiency of their activities, which was especially important in the conditions of fierce competition in the hardware market, both domestic and international. In July 2005, at a meeting of shareholders of the hardware and metallurgical plant, its new name was approved: OJSC Magnitogorsk Hardware and Metallurgical Plant MMK-METIZ and its abbreviated company name OJSC MMK-METIZ.

Since 2006, factories have been operating as a single industrial organism, a single legal entity. The process of combining the two oldest enterprises of Magnitogorsk passed in full compliance with Russian legislation, which allowed to avoid infringement of the interests of shareholders, employees, creditors and the state. The renewal of the structure, the implementation of the program of technical re-equipment and modernization of production are the guarantee of the stable development of the enterprise, improving the quality of its products, its competitiveness in the hardware markets.

At present, MMK-METIZ Magnitogorsk Hardware and Calibration Plant is a stably operating modern enterprise, one of the three leading Russian manufacturers of hardware products in terms of production;

The plant produces a wide range of products: wire, fasteners for railway and construction applications, calibrated steel, welded and metal mesh, ropes, electrodes for welding, flux-cored wire.

Optimization of production and technological ties, rational use of all types of resources - all this allows achieving high production results.

Among the components of success and active work on the technical re-equipment and modernization of production. OJSC MMK-METIZ purposefully moves towards the realization of one of the main strategic goals in its activities: the phased creation of a high-tech complex for the production of modern types of metal products that are in stable consumer demand.

Since 2008, the plant has successfully implemented significant investment projects, which made it possible to modernize key technological operations of the main production facilities. At the same time, there is not an increase in production capacities, but their qualitative improvement due to the withdrawal of obsolete and physically worn out capacities and their replacement with modern, high-performance equipment, the most advanced in technical and technological terms.

The result of the work on modernization and technical re-equipment carried out in recent years is that OJSC MMK-METIZ currently produces 51 percent of products using modern equipment.

To date, work on technical re-equipment is actively ongoing. Among the priority projects of 2016, the installation of a complex of equipment for the production of cold-deformed reinforcing steel with a high-strength diameter of 9.6 mm should be highlighted. Implementation of the project will increase the production of high-strength reinforcing bars of periodic profile with a diameter of 9.6-10.0 mm to 18 thousand tons per year and ensure the medium-term need of Russian Railways for reinforcing bars for the production of concrete sleepers.

The jubilee year 2017 was for MMK-METIZ OJSC the beginning of the implementation of an unprecedented investment program in the amount of 3.8 billion rubles, calculated until 2020. Its goal is to modernize the plant in order to reduce production costs, improve quality, expand the product line. The project is unique in its complexity, it affects all spheres of the plant’s life.

In 2017, the Ministry of Economic Development of the Chelyabinsk Region and OJSC MMK-METIZ entered into a contract for the implementation of the project “Modernization of the Production of Hardware Products”, under which it is planned to produce products worth 39 billion rubles by 2024. The effect for OJSC MMK-METIZ of the use of a non-financial incentive instrument will amount to 423 million rubles.

The investment program includes the concentration of production at one production site (currently there are two of them) in order to increase the efficiency of space use and significantly reduce energy consumption. In two and a half years, 120 pieces of equipment were transferred. A complete cessation of production at the calibration site is scheduled for the fourth quarter of 2019. As a result of the program, it is also planned to develop energy infrastructure with the introduction of modern energy-efficient technologies and equipment. The development program also includes the commissioning of 75 units of new high-tech equipment for the production of fasteners, wire and ropes, as well as calibrated steel.

In particular, in 2017–2018, thanks to the commissioning of equipment by Taiwanese manufacturers, the production of bolts and nuts according to DIN M6-M12 standards was mastered; KOHNLE hardening and tempering unit for the production of high-strength fasteners, a Tesar galvanizing line for galvanizing were purchased. The commissioning of this equipment made it possible to ensure the high quality of heat treatment of fasteners, including high-strength fasteners for bridge construction, and to expand the assortment due to the development of the production of galvanized fasteners of large diameters. The total investment for the project amounted to more than 400 million rubles.

In 2018, an import-substituting project was implemented: a new complex for the production of self-tapping screws was put into operation, which made it possible to increase their production volume and expand the product range by increasing the maximum length of self-tapping screws, mastering the production of screws for window profiles (including those with a “drill” tip), Self-tapping screws with a hemispherical head and press washer, universal wood screws and nail-screws for plastic dowels.

In 2018–2019, a complex for the production of high-carbon wire and steel ropes was launched, which allowed the plant to reach a new level of quality and master new types of ropes, including eight-strand, non-twisting, with plastically crimped strands. The total investment for the project amounted to more than 1.6 billion rubles.

This year, MMK-METIZ also implemented a major project - the commissioning of the complex of the German company EJP for the production of rebar and calibrated bar stock with a capacity of 36 thousand tons per year. The complex consists of two high-performance automatic lines capable of performing several operations: from descaling to packaging. The total investment for the project amounted to more than 600 million rubles. For the enterprise, its implementation is a new level of production and guaranteed high quality of manufactured riot and bar calibrated rolled products.

In the fourth quarter of this year, projects are underway to expand the production of zinc-coated products. It is about wire and fasteners. For this purpose, a continuous hot-dip galvanizing wire unit was purchased, and the existing FIB hot-dip galvanizing line is being reconstructed. In this area, an automatic galvanizing galvanizing line for M6-M12 fasteners will be put into operation to obtain a protective zinc coating in order to increase their corrosion resistance and improve their presentation. The total investment for the two projects will be 365 million rubles.

For 2020, at MMK-METIZ, it is planned to commission four more production complexes. In the first quarter, bell-type furnaces for spheroidizing annealing of calibrated rolled products will be mounted. Their launch will contribute to import substitution and increase the production of automotive components in Russia.

In the future, the company will install a complex of rewinding machines for forming coils of wire according to customer requirements and a complex of cold heading and thread rolling machines for the production of machine-building bolts M16-M24, which will allow the replacement of worn-out equipment and increase productivity by 50-70%.

Another project, scheduled for 2020, is the commissioning of a hot-screw machine for the production of railway bolts and track screws, including the Fosslo type for high-speed highways. The total investment in these projects will exceed one billion rubles.