The year was marked by weakening steel demand, elevated interest rates, and slowing industrial activity in Russia and several international markets. Despite these headwinds, MMK produced 10.2 million tonnes of crude steel and sold 9.9 million tonnes of steel products, maintaining its position as one of Russia's leading steel producers.
The company reported that domestic market conditions were significantly affected by tight monetary policy and reduced investment activity. Russian steel consumption declined by more than 14% during the year, contributing to a 9.2% decrease in MMK's steel production compared with 2024. Steel product sales also fell by 7.2% year-on-year.
Strategic Investments Continue
A major milestone for MMK in 2025 was the successful ramp-up of Coke Battery No. 12, described by the company as its largest investment project of the past decade. The facility is expected to enhance operational efficiency while significantly reducing environmental emissions.
The company also completed construction of a large-scale air separation complex in the Ural region, securing stable supplies of oxygen, nitrogen, and argon for steelmaking operations. Additional modernization projects included the introduction of bottom-blowing technology in the oxygen converter shop to improve production efficiency and steel quality.
Another notable development was the commissioning of a new heavy engineering workshop within MMK's Mechanical Repair Complex. The facility, launched with the participation of Russian President Vladimir Putin, is designed to manufacture import-substituting heavy machinery products for the mining, metallurgical, and engineering industries, with annual output expected to exceed 10,000 tonnes.
MMK also launched the first phase of a new steel roll manufacturing facility, which will produce backup and work rolls previously unavailable from domestic Russian suppliers.
Focus on High-Value Products
The company continues to prioritize premium and high-technology steel products. Premium products accounted for approximately 40% of total steel sales in 2025.
MMK remains a leading supplier to Russia's automotive, pipe, construction, appliance, and packaging industries. During the year, the company introduced several new steel products, including SteelArt Design, a digitally printed decorative galvanized steel product that MMK says has no domestic equivalent in Russia.
Management highlighted the modernization of the company's hot strip mill and continued efforts to expand the range of advanced steel grades for automotive and industrial applications.
Environmental Progress
Environmental performance remained a central focus of MMK's investment strategy. The company reported a 32.2% reduction in gross atmospheric pollutant emissions compared with 2017, equivalent to a decrease of approximately 64,000 tonnes.
MMK's investments have also contributed to a substantial improvement in air quality indicators in Magnitogorsk. The city's Comprehensive Atmospheric Pollution Index fell to 3.8 in 2025, representing a fourfold improvement from 2017 levels and placing local air quality within the "low pollution" category.
The company further reported a reduction in specific atmospheric emissions to 13.14 kilograms per tonne of steel, down 23% from 2020 levels.
Digital Transformation Accelerates
MMK continued implementing the second phase of its digitalization strategy, which runs through 2029. The company currently manages a portfolio of more than 200 digital initiatives and plans to invest approximately RUB 2.5 billion in digital projects during the current phase.
Artificial intelligence has become a key component of MMK's transformation efforts. Of 95 digital projects completed to date, 51 have incorporated AI technologies. Management expects digitalization initiatives to improve production efficiency, product quality, workplace safety, and environmental monitoring.
Safety and Social Investment
Workplace safety remains a strategic priority. MMK reported a 33% reduction in injury rates compared with 2020, lowering its Lost Time Injury Frequency Rate (LTIFR) to 0.44.
The company also expanded its safety culture program, "Safety Without Danger," which applies risk-based management tools and digital systems to reduce workplace incidents and move toward a goal of zero fatal and serious injuries.
Beyond its industrial operations, MMK invested RUB 9.4 billion in social programs and charitable initiatives during 2025. The company continued development of the large-scale "Attraction" urban resort project in Magnitogorsk, adding new recreational facilities and expanding infrastructure intended to improve quality of life in the region.
Looking Ahead to 2035
MMK's Board of Directors approved a new corporate strategy extending through 2035. The strategy emphasizes operational efficiency, cost reduction, expansion of high-value steel products, environmental sustainability, and digital innovation.
Management expects global steel markets to remain volatile amid geopolitical uncertainties, shifting trade policies, and evolving demand patterns. Nevertheless, MMK believes its modernized asset base, strong balance sheet, diversified product portfolio, and focus on technological leadership position the company for long-term growth.
The company intends to continue investing in production efficiency, environmental initiatives, advanced steel products, and community development while strengthening its role as a key supplier to Russia's industrial sector.
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