The philosophy
of partnership:
Stronger together

The Philosophy of Partnership:
stronger together

Customer focus is of utmost importance in all aspects of Metalloinvest’s business, from our high-quality products to our responsible and efficient use of resources to meet society’s interests.

Metalloinvest’s philosophy of partnership extends to its customers and all of its stakeholders.


Metalloinvest’s development strategy is aimed at strengthening the Company’s position as a global leader in the production of merchant hot briquetted iron, and as a regional producer of iron ore raw materials and high-quality rolled steel products; increasing the output and quality of its high value-added products; and boosting the efficiency of production processes and growing customer focus.

The success of our strategy is upheld by the following pillars:

Sergei Nenashev
Commercial Director, PJSC MMK

Magnitogorsk Iron and Steel Works (MMK) and Metalloinvest have a long-standing and solid partnership. As a company and brand, Metalloinvest is associated with technological innovations, a reliable and stable supply of products, as well as a talented and forward-thinking management team.
The iron ore raw materials purchased by MMK as part of our long-term contracts with Metalloinvest fully adhere to the high standards we uphold at our own company.
It is also worth acknowledging the consistent and effective work by Metalloinvest on the modernisation of its production processes, resulting in an improvement in the quality of iron ore products and hot briquetted iron.

Eduard Stepantsov
Head of Commercial Department, JSC OMK

In 2017, Metalloinvest and OMK signed a 10-year contract for the supply of cast billets for railway wheels. Ural Steel upgraded its continuous casting machine specifically for the project, allowing Vyksa Steel Works to abandon the outdated technology of open hearth furnace steelmaking. We are now confident that the wheel-rolling facility at Vyksa Steel Works will have a stable steel billet supply over the next ten years.

Denis Prikhodko
Sales Director, ChelPipe Group

Metalloinvest is one of the industry’s best companies, possessing skilled personnel and a modern production and technological base. The Company’s effective management and highly advanced technology allow it to make steady progress as well as compelling long-term plans for expanding our cooperation. Today, Metalloinvest is one of the key partners of ChelPipe Group in flat products and steel billet supplies for the manufacture of welded and seamless pipes.

Dmitry Sakhno
Director, Sales of Raw Materials,
Strategic Procurement, Logistics,
PJSC Severstal Management

Severstal has been working with Metalloinvest since 2010, procuring iron ore products for its major asset, Cherepovets Steel Mill. The parties renew their contract every year, which is testament to the high quality of raw materials supplied by Metalloinvest for pig iron production.

Alexander Shiryaev

Metalloinvest is TMK’s long-standing and reliable partner, an important supplier of metallised products, pipe billets, and flat products. The Company stands out for its flexibility, business agility, and openness to customer requests. We are pleased with our cooperation with Metalloinvest, in particular with our long-term supply contract for hot briquetted iron signed in late 2016. The supply has enabled us to diversify our feedstock sources and improve the quality of steel we produce, ensuring supplies of high-quality pipe products for our customers.

Rustam Shamsutdinov
Deputy General Director, Procurement, KAMAZ PTC

Metalloinvest is a reliable and long-standing strategic supplier of KAMAZ. We use long products manufactured by OEMK to manufacture critical and high-load parts and components for our vehicles, which is testament to the reliable quality of our partner’s products and provides a robust platform to ensure the high quality of our trucks.
Our long-standing productive partnership received a boost in 2017 – a three-year memorandum of cooperation was signed for the supply of high-quality rolled steel products (SBQ). KAMAZ and Metalloinvest hold regular co-ordination councils helping us to expand our order portfolio, streamline supply chains, and resolve technical issues. Together with our partners, we ensure the continuous improvement in the quality of our vehicles and components.

Ilya Polyakov
Сhairman of the Management Board of PJSC Rosbank,
Chief Country Officer for Russia, Societe Generale Corporate & Investment Banking

2017 was marked by further development of the partnership between Societe Generale Group/PJSC Rosbank and Metalloinvest. Metalloinvest’s commitment to its chosen strategy helped the Company to consolidate its market position, which in turn had a positive effect on the Company’s financial position, enabling it to successfully implement its programme to raise funds through major Western banking groups.
As Metalloinvest’s long-standing partner, Societe Generale Group/PJSC Rosbank notes the well-coordinated efforts of the Company’s finance team, which enabled prompt and centralised handling of issues across the Company’s enterprises.
We would also like to thank Metalloinvest’s management team, which views the interaction with financial partners as an essential part of its work, along with an ongoing open dialogue on all business aspects, including updates and explanations covering both the performance of the Company’s plants and the potential negative trends inherent in any market.

Alexander Shokhin
President of the Russian Union of
Industrialists and Entrepreneurs (RSPP)

Metalloinvest is one of the most innovative and outperforming metals and mining companies in Russia. Metalloinvest contributes significantly to the economic development of the Russian Federation and drives economic growth across its regions of operation. The Company is a leader in corporate social responsibility (CSR) in Russia and sees CSR as an integral part of its strategy and the foundation for its long-term business sustainability. Metalloinvest’s sustainability efforts are widely recognised at the annual All-Russia Contest: Russian Business Leaders: Dynamics and Responsibility.

Yuri Berg
Orenburg Region Governor

For the Orenburg region, Metalloinvest is, above all, the Ural Steel plant. The steel plant is the region’s largest and a local economic leader, consistently upgrading and expanding its production capacity. Metalloinvest’s production base and investments are crucial in developing and diversifying the Novotroitsk economy. The Company has traditionally demonstrated a high level of corporate social responsibility through initiating and actively participating in projects significant to the Orenburg region and its residents.

Alexander Mikhailov
Kursk Region Governor

MIkhailovsky GOK is a major taxpayer and employer in the Kursk region. In many aspects, the future of the region’s residents is contingent on the plant’s successful development.
As a socially responsible company, Metalloinvest takes an active part in developing the Kursk region. We jointly implement major initiatives aimed at raising the quality of life in the region. The Company successfully runs a number of targeted social initiatives in the region; community facilities have been built and previously established ones are being renovated, including schools, kindergartens, and healthcare and sports facilities.

Yevgeny Savchenko
Belgorod Region Governor

It is hard to overestimate Metalloinvest’s role in the social and economic development of the Belgorod region. The Company’s ambitious investment projects help strengthen the region’s production potential and boost the local economy’s growth. The Company’s systemic care for its employees, initiatives supporting education, healthcare, culture, sports, and recreational environment in the Stary Oskol and Gubkin urban districts contribute to positive changes in the region and, more importantly, to the stable improvement in the quality of life for people in the Belgorod region.

Dear shareholders, partners, and colleagues, 

In 2017, Metalloinvest achieved excellent operating and financial results, driven by a strengthening market for both iron ore raw materials and steel products. This positive momentum was also supported by the commitment shown by all of our employees, which was equally important for the Company’s performance and contributed to our ongoing efforts to enhance production and business processes.

The key priorities for Metalloinvest’s development are strengthening customer focus, improving product quality, and health, safety, and environment (HSE) matters. The Company implemented a series of initiatives during 2017, making notable progress in all the above-mentioned areas.

Read the Statement

Statement from the
Chairman of the Board of Directors

Iron ore
million tonnes
million tonnes
million tonnes
Pig iron
million tonnes
million tonnes
USD million
USD million
EBITDA margin
USD million
Environmental protection expenditures
USD million

Key performance highlights