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Press Release

ChTPZ and MMK jointly create railcar fleet

April 26, 2011, Chelyabinsk-Magnitogorsk, Russia - OJSC Chelpipe (ChTPZ) and OJSC Magnitogorsk Iron and Steel Works (MMK) are creating their joint rolling stock to ensure timely deliveries of steel plate from MMK's Mill 5000 to ChTPZ's Vysota 239 production unit. Implementation of this project has become part of strategic cooperation between the two companies. The decision to launch this initiative was made in 2007 when Mill 5000 and Vysota 239 were still under construction. ChTPZ and MMK jointly acquired forty-four 12-meter long strip carriers (equipped with mobile loading ramps) from the Ukrainian Company Dneprovagonmash.

In October 2010, ChTPZ contracted the Transmash Company to supply custom-made 18-meter strip carriers. The new design of the railway cars meets all the requirements of ChTPZ and MMK and allows transportation of 12- and 18-meter long steel plates. The first cars of this rolling stock were delivered to MMK and ChTPZ this year. At the moment ChTPZ operates forty-four 12-meter and forty-six 18-meter strip carriers of its own. MMK has forty 18-meter strip carriers in operation.

Through the end of 2011, Transmash will deliver 229 18-meter platforms to ChTPZ. The number of railway strip carriers owned by MMK will increase to 44 by the end of the year. Availability of the shared strip carrier fleet will make ChTPZ and MMK independent from shipping companies in terms of broad plate transportation and will save both companies over 20% in transportation costs.


About ChTPZ
ChTPZ is one of the leading industrial groups of the metallurgical complex in Russia. By the end of 2010 the company had a 16.3% share of total Russian producer shipments. ChTPZ unites companies and enterprises of ferrous metallurgy - OJSC Chelyabinsk Pipe Rolling Plant, OJSC Pervouralsk Novotrubny Plant, a company that purchases and reworks scrap metal META, the metal trading division of JSC Trading House Uraltrubostal and Rimera's oil services division.

ChTPZ Directorate of Public Relations
Sergei Rybak, Advisor to General Director of ChTPZ PR department
Tel. +7 912 310 9703



About MMK
OAO Magnitogorsk Iron & Steel Works is one of the world's largest steel producers and Russia's leader in the ferrous industry. The company's Russian assets in Russia include a major steel complex with a full production cycle, from preparation of iron ore to downstream processing of ferrous metals. MMK produces a wide range of steel with a predominant share of products with high added value. In 2010 MMK Group produced 11.4 million tons of steel and 10,4 million tons of commercial products. MMK Group's revenue for 2010 was $7.719 billion and EBITDA was $1,606 billion. Profit for the period was $232 million.

MMK Communications Department

Evstigneeva Elena
tel. +7 985 763 4443
evstigneevaed@mmk.ru  

Golubkov Kirill
tel. +7 916 675 3081
kgolubkov@mmk.ru  

Proskurov Alexander
тел. +7 3519 246303
proskurov@mmk.ru  


2011-04-26

Please see Magnitogorsk Iron & Steel Works (MMK) company electronic office

Information and Public Relations Department
MMK
 
Phone: +7 (3519) 24-03-02
Fax: +7 (3519) 24-85-54
E-mail: press@mmk.ru

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