MMK Turkish asset sets new production record for hot dip galvanized products
January 2021 saw the hot dip galvanizing line at the MMK Metalurji site in Dortyol (Turkey) churn out 42,316 tonnes of products, an absolute record for any MMK Group unit. In total, two hot dip galvanizing lines at MMK's Turkish sites in Dortyol and Dilovasi produced 78,613 tonnes of hot dip galvanized products in January which is a record monthly volume for MMK Metalurji.
The record-breaking achievement at MMK's hot dip galvanizing unit (CGL) in Dortyol has been facilitated by improvements to the unit's technical equipment, where engineering solutions have helped increase line speed. In addition, the 2019-2020 modernisation of the galvanizing lines brought about a new product line with a stripe thickness of up to 4,00 mm GI, and coatings of up to 600 grams/sq.m.
"Thanks to the combined, diligent work of the production, technical and sales teams, MMK Metalurji has been able to expand its product range and improve the system for taking orders,” said Pavel Shilyaev, CEO of Magnitogorsk Iron and Steel Works, the parent company of the Turkish plant. He continued, "As a result, our Turkish facility received a range of orders for hot dip galvanized products in January, the fulfillment of which contributed to the record results.” Denis Kvasov, CEO of MMK Metalurji noted that the company is constantly striving to improve production processes and attract new orders, taking into account market needs.
In 2020, despite the challenges posed by the coronavirus pandemic and quarantine restrictions on the movement of goods, MMK's Turkish site has returned impressive operational and financial results. Annual results show EBITDA amounted to $34 million, twice the expected level. This is due to sales growth on the back of a successful strategy aimed at diversification and increasing profitability. "The decisions taken during the period of most stringent quarantine measures in Q2 2020 helped the Company respond rapidly to the sharp rise in demand that followed the removal of quarantine restrictions in the second half of the year. Thanks to our preparation, we were able to offer a full range of products without any production restrictions at all," Denis Kvasov commented on MMK Metalurji’s impressive results.
MMK Metalurji is a modern metallurgical complex based in Turkey. Since 2011, PJSC MMK owns 100% of MMK Metalurji shares. The Turkish site includes an electric steel shop with а casting and rolling unit, a cold rolling mill, and a metals service centre with a hot dip galvanizing unit and two polymer coating units in Iskenderun, in addition to a metals service centre with a hot dip galvanizing unit and two polymer coating units in Istanbul. The complex in Iskenderun also includes a seaport capable of receiving vessels with a displacement of up to 100,000 tonnes. In 2020, MMK Metalurji's sales grew by 2.8% to 741 thousand tonnes.
