MMK Magnitogorsk Iron and Steel Works
Russia
Ural Federal District of the Russian Federation
Magnitogorsk
Chelyabinsk region, 455000, st. Kirova, 93
Assets
PJSC Magnitogorsk Iron and Steel Works (formerly OJSC) is one of the world's largest steel producers and occupies a leading position among iron and steel enterprises in Russia. The company's assets in Russia are a large metallurgical complex with a full production cycle, from the preparation of iron ore raw materials to deep processing of ferrous metals.
MMK produces a wide range of metal products with a predominant share of products with high added value: high-strength, flat rolled products, metal products for the automotive industry, coated, long, bent and shaped rolled products.
MMK is implementing the MMK - Atakas project in the Republic of Turkey for the production of 2.3 million tons of flat steel.
Performance indicators
2024
5th in steel production in the world - 301 million tons
In October 2025, TAdviser prepared an infographic on the world's largest steel producers. As part of this work, the financial statements of the companies were studied, as well as the data of the audit and consulting company "Business Profile." Read more here.
Revenue growth 0.7% to ₽768,47 billion
Revenue of PJSC Magnitogorsk Iron and Steel Works (MMK) in 2024 increased by 0.7% and reached ₽768,47 billion, while in 2023 it amounted to ₽763,04 billion. The company announced its financial results on March 20, 2025/
According to the press service of MMK, revenue growth is associated with an increase in prices for metal products, caused by inflationary factors and an increase in the cost of raw materials. Despite the increase in revenue, EBITDA decreased by 21.8%, amounting to ₽153,02 billion. The decrease is due to an increase in the cost of purchasing metallurgical raw materials, an increase in the wage fund and the total inflationary burden.
EBITDA margin decreased to 19.9% versus 25.6% in 2023. The company's net profit decreased by 32.6%, amounting to ₽79,74 billion. At the same time, free cash flow increased by 15.3%, reaching ₽35,46 billion. The main reason for this growth was the release of working capital due to a decrease in stocks of metal products in warehouses and an increase in interest income from placed deposits.
MMK's capital investments in 2024 increased by 4.2% to ₽98,8 billion, which is associated with the implementation of the company's long-term investment strategy. The key event of the year was the commissioning of coke battery No. 12, which provides 2.5 million tons of dry coke per year, which covers 50% of the company's needs.
The company reduced total debt to ₽49,43 billion (against ₽72,52 billion in 2023), which was made possible by the redemption of bonds. MMK's net debt remains in the negative zone (−₽73,39 billion), which indicates the high liquidity of the enterprise.
The company noted that in 2025 a significantly smaller amount of capital investments is expected compared to 2024. This is due to the completion of key projects within the framework of the group's development strategy until 2025 and the development of a further strategy for the period up to 2030.[1]
2023
Net profit growth by 68.2% to RUB 118.36 billion
Magnitogorsk Iron and Steel Works (MMK) completed 2023 with a net profit of 118.36 billion rubles recorded at the end of this period, which is 68.2% more than a year ago. The company's revenue in comparison with these periods increased by 9.1% and reached 763.39 billion rubles. Such data are provided in the reporting of MMK according to international financial standards (IFRS), which was published on February 7, 2024.
According to MMK, due to an improvement in the sales structure, including an increase in the share of premium products, EBITDA in 2023 increased by 26.2% compared to the previous year, to 195.59 billion rubles. EBITDA margin reached 25.6%. Free cash flow for the year decreased by 57.6% and amounted to 30.75 billion rubles, which, as explained in the company, was the result of an increase in capital expenditures.
Capital investments (capex) of the group for 2023 amounted to 94.86 billion rubles, an increase of 26.4% compared to 2022, which is due to the ongoing implementation of MMK's development strategy. The ratio of net working capital to revenue at the end of 2023 is at a comfortable level for the company and amounted to 12.7%, which reflects the effective work of management with working capital, MMK noted.
The plant explains the growth of capex by the "ongoing implementation of the group's development strategy": reaching the final stage of the construction of coke battery No. 12, the ongoing construction of an oxygen block, and the construction of a hot-rolled sheet heat treatment complex. Chairman of the Board of Directors of MMK Viktor Rashnikov estimated the investment program of the Magnitogorsk Metallurgical Plant in 2023 at about 50 billion rubles.
The increase in revenue in the group was attributed to "improved sales structure," including an increase in sales of premium products.
Consolidated Financial Statements for the year ended December 31, 2023
11.1% increase in steel production to 12.9 million tons
In 2023, steel production at the Magnitogorsk Metallurgical Plant (MMK) increased by 11.1% compared to 2022 and reached 12.9 million tons. The press service of the enterprise noted that this reflects the favorable situation in the Russian rolled metal market. Such data are contained in the report, which MMK published at the end of January 2024.
It follows from the document that in 2023 at the site in Magnitogorsk, steel production increased by 16.8% - to 12.6 million tons, and at the Turkish asset decreased by 57.4% - to 381 thousand tons due to the difficult macroeconomic situation.
Iron smelting at MMK increased by 9.5% to 9.9 million tonnes. The indicator is associated with a decrease in the duration of repair work in the blast furnace production. Sales of metal products in 2023 in comparison with 2022 increased by 10.1% - to 11.7 million tons. This, according to the company, is due to high demand from the automotive engineering industry, construction activity and expanding sales to neighboring countries.
Sales of premium products increased by 7.1% - to 5 million tons. Coal concentrate production decreased slightly compared to last year, to 3.4 million tons. Iron ore production in 2023 decreased by 3.8% compared to a year ago, to 563 thousand tons.
According to MMK forecasts, in the first quarter of 2024, sales indicators will be influenced by a seasonal slowdown in construction activity in the domestic market, as well as buyers' reduction in metal stocks due to a key rate increase. Demand for metal products is expected to recover by the end of the first quarter - the beginning of the second quarter of 2024 against the background of buyers replenishing stocks of metal products and seasonal rise in construction activity.
2021: Revenue - $11.87 billion, profit - $3.1 billion
Magnitogorsk Iron and Steel Works (MMK) completed 2021 with revenue of $11.87 billion received following this 12-month period. Compared to 2020, sales increased by 85.6%, reflecting an increase in sales volumes, partially offset by a correction in world steel prices. The group released such data on February 28, 2022.
MMK's net profit in 2021 was $3.1 billion, an increase of 5.2 times compared to profit a year ago, "reflecting the growth in production volumes and sales efficiency against the background of positive trends in global markets," the press release said.
.png)
EBITDA more than doubled compared to 2020 to $4.2 billion. EBITDA margin reached 36.1%, an increase of 12.8 pp. Free cash flow at the end of 2021 amounted to $1.62 billion.
According to MMK, the output of the 2500 mill at full capacity in 2021 allowed to increase sales of hot-rolled (g/k) rolled products by 37% compared to 2020, which was also reflected in the geographical and product structure of sales. Thus, the share of sales in the domestic market (Russia and the CIS) amounted to 72%, having decreased by 9 percentage points against the background of the restoration of traditional sales volumes of rolled products to export markets. At the same time, despite the growth in sales of premium products in absolute terms, the share of such products in the sales structure in 2021 amounted to 42%, having decreased by 7.5 percentage points compared to 2020, against the background of an increase in production of rolled products.
In 2021, MMK's revenue in the steel segment reached $11.1 billion (in Turkey, the figure was $1.18 billion, an increase of 128.6%), which is almost 86% higher than a year ago. In the coal mining segment, sales increased by 148.6%, to $445 million.[2]
2020
- $6.395 billion in 2020 revenue $1.492 billion EBITDA
- 11.574 million tons of smelted steel in 2020
- 10.7 million tons of metal products sold in 2020
2018
- MMK Group produced 12.7 million tons of steel and 11.6 million tons of commercial metal products.
- MMK Group's revenue for 2018 amounted to $8.214 billion, EBITDA - $2.418 billion.
2009
- In 2009, the mill produced 9.6 million tons of steel and 8.8 million tons of commercial metal products. MMK Group's revenue for 2009 amounted to $5.081 billion, EBITDA - $1.285 billion, profit for the period - $219 million.
Digitalization
Main article: Digitalization in MMK
History
2025: Purchase of the Livadia Hotel in Yalta
Magnitogorsk Iron and Steel Works (MMK) acquired the Livadia Spa Hotel in the Crimean village of Livadia. This became known on October 16, 2025 from the press service of MMK. The cost of the acquisition has not been disclosed. Read more here
2024: Purchase of the Tikhov mine for 22.5 billion rubles
In early February 2024, the Magnitogorsk Metallurgical Plant (MMK) disclosed the cost of the transaction for the purchase of the Tikhov mine in Kuzbass - 22.55 billion rubles, including 17.514 billion rubles in the form of loans repaid in favor of the former owners of the company. Read more here.
2021: TAdviser interview with ATACH Product Chief Dina Bakhareva
In April 2021, in an interview with TAdviserDina Bakhareva, the head of the ATACH product - the Russian system for management of business processes of electronic document management and corporate communications, told what qualities and "super-abilities" electronic document management systems should have for large industrial enterprises, what principles they should comply with, what are the main criteria for the choice and implementation of such systems, what are the features of the deployment of EDMS within a giant enterprise and how the implementation results can be assessed. Read more here.
1931: Construction of Magnitogorsk Iron and Steel Works
Notes
| The site content is translated by machine translation software powered by PROMT. The machine-translated articles are not always perfect and may contain errors in vocabulary, syntax or grammar. Read original article If you find inaccuracies or errors in the results of machine translation, please write to editor@tadviser.ru. We will make every effort to correct them as soon as possible. |