Putin met with the Magnitogorsk Iron and Steel Works CEO

Vladimir Putin held a working meeting with Victor Rashnikov (the Chairman of the Board of Directors of Magnitogorsk Iron and Steel Works). Results of work of the entity and plans for the future were discussed.



V. Putin: Victor Filippovich, I haven't seen you for ages, but I know that your group of companies develops, Magnitogorsk develops. I hope you will tell us more about what is made lately, and will share your plans for the near-term outlook.

V. Rashnikov: For the last five years we invested more than four billion, and in general in 15 years (since the moment when you have visited the plant for the first time in 1999, as the Prime Minister) we invested 13 billion, 10 – was invested direct in plant.

It allowed us to reequip the plant completely, we increased the absolute outcome of our production on three million tons, but the main thing is that we improved our structure and twice increased the amount of our production with the start of stan-2000 in which you had participated.


We added 1,5 thousand tons of a thick leaf and closed all requirement for metal for large diameter pipes production today. Today we buy nothing abroad, we make all the pipes ourselves.

We increased production of galvanized steel. If in 2002 we did only 100 thousand tons at plant, then today we already on 100 thousand load every month. Today we make 1 million 200 thousand tons of galvanized products.

V. Putin: For automotive industry?


V. Rashnikov: Yes, for automotive industry. We close all requirement for the Russian plants today, we do 70 percent for the AvtoVAZ, 50% – for GAZ, we do 50% for KamAZ. We also work with foreign plants: Ford, Volkswagen, Renault. We deliver about 50 thousand tons a year. We completely cover all requirements which "Ford" requests.

All our projects were directed to products for the internal market, and I tell you that we increased our presence. If in 2000 we did 3,5 million tons for the domestic market, then today we do 9,5 million.

In recent years on average we got about one billion dollars a year. During the last five years we came to new boundaries of the profits. On average it exceed 400 million dollars a year. In total – 4,8 billion. We paid very serious taxes during this period. Retrofitting and a construction of new projects allowed us to achieve such results.


Nature protection activities: we reduced gross emissions by 1,6 times, specific – in 1,9. These are serious investments, very big costs are required. For the last five years we spent 3,5 - 4 billions each year on nature protection activities.

Payroll number – for the last five years we reduced the number of our employees by three thousand directly at the plant and if to take since 2000, then the amount of employees were reduced almost by twice: there were 36 thousand and 18 thousand work now. New technologies and the new equipment allowed us to reduce that number. We reduced the amount of people that worked for our group of companies from 60 thousand to 45 thousand.


The labor productivity(in tons) increased twice. The salary during the last five years grew by 1,5 times too and if to take the long period, then it in general grew by 10 times: today we have an average salary about 51 thousand rubles. It gives us the chance to realize the social policy – to support pensioners, medical treatment, improve the health of our workers, schools. We spend 1,5 billion a year for charity.

There is such sport – hockey. Our team ["Metallurgist"] the second time became the owner of the Gagarin Cup. We were proud to receive your congratulations, thank you. We have already become champions of Russia for five times. All this allowed us to re-equip everything, we made everything modern and expanded the variety of our products.


This year we start the new program which will take us next first five years: we go to the first repartition [smelting of cast iron from iron ore]. We made everything for the steel-smelting production. Now we begin from the mountain – from production of agglomerate till the steel-smelting production.


We are going to construct a new aglofabrika, this year we start it; we finish reconstruction of a stan-2500; we build the galvanizing aggregate which we are going to start next year; further – the coke battery and after that we start a construction of the blast furnace.

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Link: http://kremlin.ru/events/president/news/53351

Putin and Rashnikov Meeting.
Vladimir Putin and Victor Rashnikov in Kremlin.
Putin and Rashnikov Meeting 2.
Vladimir Putin with Victor Rashnikov.
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Vladimir Putin held a working meeting with Victor Rashnikov ( the Chairman of the Board of Directors of Magnitogorsk Iron and Steel Works...

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