Russia’s Minister of Industry and Commerce and European Commissioner for Enterprise and Industry have visited the Magnitogorsk Iron and Steel Works

The working visit of the high-ranking officials responsible for the Russian and EU industry was a part of Mr. Verheugen’s trip to Russia on the eve of the regular Russia-EU summit. According to Viktor Khristenko, Russia’s Minister of Industry and Commerce, MMK was chosen for the visit due to a number of factors. First of all, the iron and steel industry is among the economy’s sectors which have suffered the most from the economic crisis. Therefore, as Mr.Khristenko noted, the most important modernization projects under implementation in the industry are under a close scrutiny of both the investors and the government. The guests made a tour of  the Magnitogorsk Iron and Steel Works including the Oxygen Converter Shop, Rolling Shop №10 and the construction site of the 5000mm Plate Rolling Mill. The latter attracts the greatest interest of the visitors. Due to some of its features, such as the mill’s stand able to develop a rolling force of 12 thousand tones, the 5000mm Plate Rolling Mill will take a special position among similar facilities. The contract for the supply of equipment for the 5000mm Plate Rolling Mill and Continuous Slab Casting Machine №6 was signed in November of 2006 with SMS-Demag, a well-known German equipment manufacturer. Once completed, the mill will enable OJSC MMK to produce highly lucrative plates up to 4,850 mm in width and of strength grades up to Х120 for manufacturing large-diameter pipes for the oil- and gas sector and for ship and bridge-building and mechanical engineering industries. The annual capacity of the mill, scheduled to go on stream in July of 2009, will be about 1.5 million tonnes including approximately 0.3 million tonnes of heat-treated plates.

Günter Verheugen and Viktor Khristenko met with the top management of OJSC MMK and attended a presentation of the Magnitogorsk Iron and Steel Works after which they participated in a press conference with the federal, regional and local mass media.

Viktor Rashnikov, Chairman of the Board of Directors, talked about the Company’s current and future modernization projects and expressed confidence that products from the new rolling mill would enjoy great demand in the Russian market, especially considering major infrastructure projects related to pipelines’ construction.

Mr.Khristenko pointed out that the construction of the 5000mm Plate Rolling Mill which was not abandoned by OJSC MMK even under the conditions of the crisis, is the largest modernization project expected to be completed this year. “Our mission, that of Russia and Europe, is to raise the iron and steel industry to the high tech level. In addition, this project is a vivid demonstration of the potential of the business relations  between Russia and the European Union, starting with equipment deliveries from the EU member states and culminating in the products of the 5000mm Plate Rolling Mill, which, in their turn, will allow to manufacture  pipes for supplying oil and gas to Europe”.