MMK expects to increase steel output 3% in 2013
MOSCOW. April 12 (Interfax) - OJSC Magnitogorsk Iron & Steel Works (MMK) expects to boost steel output 3% this year, the company's CFO Alexander Andrianov said during a conference call.
"We'll be able to increase production by 300,000-400,000 tonnes," he said.
Last year, MMK produced 13.037 million tonnes of steel.
Growth in output will be supported predominantly by the construction sector.
The MMK Group's OJSC Belon expects to raise coal production 5%-7% annually. It produced 3.325 million tonnes of coking coal concentrate last year, 3.4% more than in 2011.
Andrianov said MMK's Mill 2000 and Mill 5000 were working at full capacity right now.
MMK will maintain investments at the previous year's level in 2013, at $600-$700 million, to be used to maintain current capacities.
"At the moment we don't see any significant new projects. The level of $600-$700 million for the entire group for this year might be totally suitable for us," Andrianov said.
As reported, the MMK group, the main asset of which is Magnitogorsk Iron & Steel Works, plans to invest around $7 billion in its development strategy for the period until 2022, which was confirmed at the end of last year.
The company intends to continue strengthening its foothold on the Russian market by increasing the share of value-added products in overall sales, as well as by implementing projects aimed at cutting costs.
MMK is one of the largest producers of metal products in Russia and has assets in both Russia and Turkey. Its key beneficiary is the chairman of its board of directors Victor Rashnikov (controls 86.6% of shares).