Digitalization in MMK
The article is devoted to the introduction and development of digital technologies in one of the world's largest steel producers - Magnitogorsk Metallurgical Plant (MMK).
Information security
2024: MMK revealed hundreds of violations of information security requirements, 217 employees were punished
In 2024, 493 violations of information security requirements were revealed in MMK. As a result of internal investigations, 217 employees were brought to disciplinary responsibility. MMK reports this in its annual report, published in early June 2025.
A year earlier, the group revealed fewer violations of information security requirements - 413. It also turned out to be 309 fewer cases than in 2022. At the same time, a smaller number of employees were brought to disciplinary responsibility in 2023 at MMK than in 2024 - 173 people. What is the reason for the change in these indicators, MMK could not explain TAdviser at the time of publication of the material.
In addition, during the reporting period, MMK recorded a number of cyber incidents of varying degrees of complexity, which "emphasizes the relevance and need to constantly improve information protection mechanisms." The document lists three cyber incidents, in particular. One of them - a cyber attack on the infrastructure of one of the organizations of the MMK group - led to a disruption in the performance of key IT services, according to the annual report. The consequence was the temporary unavailability of the company's IT services.
After that, organizational and technical measures were taken to eliminate the shortcomings and vulnerabilities of the IT infrastructure, using which a cyber attack was carried out.
The other two incidents cited in the report, according to the company, did not entail material damage and negative consequences. One of them is viral activity (spy virus) on the social networks of the MMK production unit. As a result of its detection in MMK, a complete antivirus check of network nodes was carried out, an unscheduled password change and a transition to specialized antivirus software was carried out.
Another incident is illegitimate network activity on one of MMK's public information resources. After its discovery, technical measures were taken to eliminate the shortcomings and vulnerabilities of the infrastructure, which are a potential cause of illegitimate network activity.
The annual report indicates that in 2024 MMK worked to introduce new technologies and initiatives to improve the security of information systems and confidential data. There is also a list of relevant projects implemented in the reporting period:
MMK also actively implements an import substitution program in the field of IT and information security, recognizing technological independence as a key factor in cyber resistance. MMK closely cooperates with the Industrial Competence Center (ICC) Metallurgy"" and relevant ministries, monitors and introduces promising domestic developments. In 2024, MMK launched a targeted two-year information security program with 15 projects aimed at ensuring technological independence and improving. cyber security
Digital technologies
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2025
MMK approved a budget of 2.6 billion rubles for digitalization. What the money will go for
In December 2025, the results of the first stage of the digital strategy of the Magnitogorsk Iron and Steel Works (MMK) and plans for the next period were presented. From 2025 to 2029, MMK will allocate 2.6 billion rubles for digital projects, the projected economic effect of which is estimated at 3.1 billion rubles.
According to the press service of MMK, the program includes large initiatives to optimize the first redistribution - the stage of preparation of iron ore raw materials for melting. Among them are the development of a digital twin of the agloshicht preparation workshop, the introduction of a digital coal warehouse and a project to control the pallet fleet of agloshakht No. 5.
Pavel Shilyaev, general director of PJSC MMK, said that investments in the first stage of the strategy amounted to 3.9 billion rubles, and the accumulated economic effect reached 6.8 billion rubles. According to Shilyaev, digitalization projects demonstrate a fast payback - on average less than 2.5 years.[1]
As reported on the MMK website, digital transformation affects all business processes of the company, starting with aglocoxodomain production, where mathematical models help to analyze the quality of the purchased coal, stack the incoming raw materials and optimize the process of iron smelting, and ending with communication with customers who, using the application specially created for them "Client MMK," online can track the progress of their orders through alterations.
MMK's digitalization strategy is based on about 200 digital transformation projects that have affected almost 20 main areas of the company's activities. The plant planned to invest about 5.53 billion rubles in digitalization at the end of 2025. The economic effect of the introduction of digital solutions in MMK was estimated at 1.81 billion rubles at the end of 2023.
Investment of ₽4 billion in digital solutions and services over four years
Magnitogorsk Iron and Steel Works has invested ₽4 billion in various digital solutions and services over the past four years. The resulting economic effect from the introduction of digital technologies amounted to ₽4,7 billion. This was announced by the head of the economics department of PJSC MMK Yevgeny Tarabaev on July 8, 2025.
According to the press service of MMK, the cumulative economic effect of the introduction of software robotization by the end of 2025 is predicted at ₽2 billion. Over a four-year period, the company has worked on 160 high-tech initiatives and implemented 95 IT projects.
It is noted that MMK follows key IT trends, including artificial intelligence and related technologies. The plant implements machine vision, Big Data, language, statistical and robotic models. Process Mining and Task Mining advanced workflow analytics tools work in synergy with robotization.
For the proactive introduction of artificial intelligence, the company has created a specialized Competence Center. The center's specialists coordinate the development and implementation of solutions based on machine learning and neural networks.
Evgeny Tarabaev cited the Optimal Cast Iron system as an example - a model that controls and optimizes the process of purchasing coal and metallurgical raw materials. The system controls the composition of the charge, laying and operation modes of blast furnaces to obtain cast iron with the best value for money.
The head of the economics department noted the peculiarities of the digital strategy of the MMK group. According to him, for the plant, the costs of software robotization are conditionally constant, and the effect is cumulative.
Each year, new robots are put into operation, giving the company savings, while previously implemented systems continue to work and also generate an effect. In 2024 alone, the economic effect of robotization amounted to about ₽500 million.[2]
CIO MMK Vadim Feoktistov: So far there are no fully ready-made Russian ERPs that can fully replace Oracle and SAP
Magnitogorsk Iron and Steel Works (MMK) historically created its IT landscape mainly on the basis of solutions from leading world vendors. And after their departure from Russia, the company, like many other enterprises, was faced with the task of choosing suitable domestic products to replace them. We are talking, among other things, about the need to replace the Oracle ERP system and MES systems. Vadim Feoktistov, chief information technology specialist of MMK PJSC, director of MMK-Informservice LLC, spoke about the challenges associated with this in an interview with TAdviser. Read more here.
MMK removed Tibco software and switched to the Russian integration platform Inpolus
On March 11, 2025, Magnitogorsk Iron and Steel Works (MMK) and Inpolyus announced the completion of Russia's largest project in the field of import substitution of binding software. MMK has implemented the domestic Inpolus ESB platform, which replaced the American Tibco products (ActiveMatrix BusinessWorks and Enterprise Message Service). Read more here.
2024
MMK spent ₽3,9 billion on digitalization in 4 years. 95 projects implemented
Magnitogorsk Iron and Steel Works for the period from 2020 to 2024 invested ₽3,9 billion in the implementation of the first stage of the digitalization strategy. During this time, 95 projects were implemented. The expected economic effect of the implementation of the first stage will be ₽6,8 billion by the end of 2025. This was announced on December 8, 2025 by the head of the quality and process management system of MMK Nikolay Gladkikh.
According to the press service of the Magnitogorsk Metallurgical Plant, the average payback period for projects is 2.4 years. Nikolay Gladkikh noted that the Optimal Cast Iron system, aimed at optimizing aglocoxodomain production, as well as introducing an optimization planning system, brought the maximum economic effect.
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Of the 95 projects implemented, 51 involved artificial intelligence technologies, which correlates with the global trend of AI technologies to the first places in the digital transformation of industry. More than half of the projects rely on machine learning and big data analytics.
In 2024, the company decided to combine all MMK competence centers engaged in various artificial intelligence technologies into a single center. Created in March 2025, the center made it possible to more effectively implement AI-based projects and unify the components of the AI digital platform. Consolidating competencies increases the speed of development and reduces duplication of effort.
The company pays important importance to digitalization in the field of quality. The implemented system of dynamic management of technological risks identifies non-standard operating modes and production situations with violations of technological parameters. In case of high risk of receiving non-conforming products, the system notifies specialists.[3]
₽6,6 billion and 95 IT projects. MMK summed up the digital transformation strategy
Magnitogorsk Iron and Steel Works completed the first five-year cycle of the digital transformation strategy, implementing 95 high-tech projects with an economic effect of ₽6,6 billion. This became known on December 26, 2024.
According to the press service of MMK, 55 projects have been implemented at production sites, from the first redistribution to sheet rolling shops.
Pavel Shilyaev, General Director of PJSC MMK, said that investments in the implementation of IT projects in the coming years will amount to ₽5 billion, and digitalization will remain the basis for the development of all strategic areas of the plant's activities.
The company is actively introducing technologies of artificial intelligence, machine vision, big data, mathematical modeling, digital twins and software robots in all structural divisions.
The best digital project of 2024 was recognized as a system for recognizing defects and monitoring the geometry of a sheet in the production of sheet steel based on machine vision technology. Evgeny Brychev, Head of Production of Rolled Plates at PJSC MMK, and his team have developed a new tool based on IMS equipment.
The best digital initiative of the year was the "Automated system for controlling the heat transfer processes of blast furnace No. 6," developed by the deputy chief blast furnace operator of MMK Mikhail Semenyuk.
For achievements in the implementation of the digitalization strategy, the Digital Olympus corporate prize was awarded. The winners in personal nominations were: Vladimir Molgachev, Deputy Head of Thick Sheet Production, Alexander Pavlov, Head of the Blast Furnace Shop, Evgeny Plotnikov, Deputy Head of the LPTs-4, and other specialists.
MMK plans to continue working on software import substitution projects and scaling effective solutions at various production sites of the company.[4]
MMK was the first in Russia to create a digital double of an entire company
Magnitogorsk Iron and Steel Works (MMK) became the first company in Russia to create a digital twin for an entire company. The new project was implemented as part of the introduction of business process analytics using Task Mining technology, the MMK press service reported on November 12, 2024. Read more here.
Digitalization budget - 800 million rubles
On October 14, 2024, the Magnitogorsk Iron and Steel Works (MMK) announced the allocation of ₽800 million for the introduction of modern technologies as part of its digitalization strategy for 2024. The company expects that the economic effect of using high-tech solutions in 2024 will be ₽1,9 billion.
According to the press service of the Magnitogorsk Metallurgical Plant, digital transformation is considered by management as a key element in improving business efficiency. MMK's digitalization strategy assumes maximum coverage of all key business areas and includes the use of advanced technological solutions in the field of artificial intelligence, robotization, big data, the industrial Internet of Things and virtual reality.
MMK CEO Pavel Shilyaev emphasized the practical nature of the digitalization strategy, noting that it is based on a comprehensive assessment of the needs of business and customers. The company focuses on the potential effects of implementing this strategy.
In 2024, the IT division of MMK (MMK-Informservice) planned the implementation of 10 digital projects in various areas. By October 2024, seven of these projects had already been worked out and implemented. This is a continuation of a large-scale digitalization program: since 2020, the company has implemented 92 digital solutions.
MMK's digitalization strategy is part of a broader trend in the metallurgical industry aimed at improving production efficiency and competitiveness through the introduction of modern technologies. Investment in digital technology allows the company to optimize production processes, reduce costs and improve product quality.
The expected economic effect, more than twice the investment, demonstrates the high efficiency of the chosen digitalization strategy. This can serve as an example for other metallurgical enterprises seeking to improve their efficiency in the face of growing global competition.[5]
Allocation for digitalization to improve product quality
Magnitogorsk Iron and Steel Works (MMK) in September 2024 announced the allocation of ₽3 billion for targeted projects to improve the quality of products mainly using digital technologies. Within the framework of the approved program of measures for 2024-2026, the plant intends to invest ₽1 billion annually in projects aimed at improving the quality of manufactured metal products and stabilizing technological processes at the enterprise.
According to the press service of MMK, the program will cover the key workshops of the steelmaking and rolling redistributions of the enterprise. Targeted investment projects involve the modernization of equipment and maintaining its operability. Particular attention is paid to digital solutions for quality monitoring. One of the most significant projects will be Digital Quality Analysis, which is planned to be implemented from 2024 to 2028. It involves the creation of a corporate online platform that tracks production technology and the provision of services to consumers. The new functionality will allow you to automatically calculate key performance metrics and exclude the human factor during quality control and product certification.
Among the initiatives already implemented in this area is the introduction of a system of dynamic management of technological risks. According to MMK, this system detects non-stationary operating modes and special production situations with violations of technological parameters. In case of high risk of obtaining products of inadequate quality, the system automatically notifies specialists and generates an interactive technical chart to adjust the technological process. This approach is based on predictive analytics and adaptive control systems. The project has already been successfully implemented in all the main production streams of the enterprise - from oxygen converter and electric furnace shops to hot and cold rolling, as well as the production of coated metal.[6]
Spending 2.9 billion rubles on digitalization for 3 years
Magnitogorsk Iron and Steel Works (MMK) has invested 2.9 billion rubles in digitalization over the past three years. This became known on July 2, 2024.
According to Andrey Eremin, Economics Director of MMK PJSC, the plant is introducing new digital technologies in all areas of its activities. This makes it possible to achieve significant economic, environmental and labor effects. As part of the digitalization strategy, 105 digital initiatives were worked out, of which 72 projects have already been implemented.
The greatest effect (64%) is provided by projects implemented at the production site, especially in aglocoxodomain production. Machine vision and artificial intelligence technologies are used here to optimize processes. As Andrei Eremin noted, an example is the Optimal Cast Iron system, which minimizes the cost of pig iron production, at the stage of which up to 80% of metallurgical production costs are formed.
Software robotization has also made a significant contribution to efficiency. Over the past three years, the economic effect of the introduction of software robots has amounted to about 650 million rubles, which is 26% of the total economic effect of all digital projects. The MMK group has 288 business processes robotic, and this work continues. Eremin stressed that the cumulative effect of the introduction of robots is growing every year, since the cost of maintaining the system is minimal after its initial implementation.
Director of MMK-Informservice LLC Vadim Feoktistov noted that software robotization is a key element of the plant's digitalization strategy. New technologies, such as Process Mining and Task Mining, complement software robotization, allowing you to analyze and optimize business processes, excluding human participation.[7]
2020: MMK approves new IT development strategy
The new strategy, developed by PJSC Magnitogorsk Iron and Steel Works together with Deloitte Consulting LLC, covers the period until 2025.
The need to update the IT strategy arose after the adoption of a new digitalization strategy for the company in 2019, since all MMK digitalization projects, without exception, contain an IT component.
The IT strategy of MMK PJSC - 2025 includes the implementation of 27 strategic initiatives, including: unification of platforms and solutions of basic automation; Apply cloud solutions to relevant system classes unification of the MES platform for production automation; Support and develop IT infrastructure to meet the growing demands of IT solutions and business users Improve IT infrastructure disaster tolerance development of information security facilities; regular updating of needs and coordination with the Digital Office to support the implementation of MMK's Digitalization Strategy; adaptation of the IT management operating model to the implementation of the objectives of the updated IT Strategy 2025.
The implementation of the strategy will allow PJSC MMK to achieve the required target state of information technologies, which will meet business needs and time requirements.
2019: Launch of digitalization program, in which 5 billion rubles will be invested
At the end of December 2019, the Magnitogorsk Iron and Steel Works (MMK) announced the launch of a digitalization program developed jointly with Deloitte. It is planned to spend 5 billion rubles on digital projects from 2020 to 2024, or 2% of capital expenditures planned for this period.
As Vedomosti writes with reference to MMK Economics Director Andrei Eremin, 72 out of 98 IT projects are aimed at improving the efficiency of production processes. and the rest - for research and improvement of production safety.
 | A person is no longer able to cope with a huge amount of data. And data today is an asset of industrial companies. It is important to create a data management system to understand which of them are needed and how to use them, "he explained. |  |
The average payback period for one digital project at MMK is estimated at 1-3 years. It is planned to spend an average of 36 million rubles on each of them.
By 2025, MMK intends to receive an additional $686 million (42.3 billion rubles) of EBITDA profit from new projects. Digital initiatives will account for 14.7% (6.2 billion rubles) of revenues, and in the future they will allow the company to receive an additional 4.5% EBITDA annually, Eremin said.
According to him, up to 80% of the effect should be brought by IT projects in production, the remaining 20% - an increase in the internal efficiency of the company and client services. The publication reminds that in 2018-2019 MMK completed a number of digital projects. The effect of them in 2019 is estimated at $25 million.
Fitch Raitings analyst Yulia Buchneva notes that by the end of 2019, all companies in the industry are engaged in digitalization. It allows you to manage costs, improve sales channels, increase internal efficiency and generally competitiveness, she said.[8]
IT passport of projects in MMK
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Notes
- ↑ MMK until 2029 invests 2.6 billion rubles in digital projects
- ↑ By the end of 2025, the cumulative effect of robotization in the MMK Group will amount to 2 billion rubles
- ↑ MMK expects 6.8 billion rubles of economic effect from the introduction of 95 digital projects
- ↑ Over 5 years, the economic effect of digitalization at MMK amounted to 6.6 billion rubles
- ↑ IN 2024, DIGITAL SOLUTIONS WILL BRING MMK AN ADDITIONAL 1.9 BILLION RUBLES
- ↑ MMK WILL INVEST RUB 3 BLN IN TARGETED PRODUCT QUALITY IMPROVEMENT PROJECTS
- ↑ MMK INVESTED RUB 2.9 BLN IN DIGITAL SOLUTIONS OVER THREE YEARS
- ↑ MMK invests 5 billion rubles in business digitalization until 2024
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