MMK COMPLETES CONSTRUCTION OF MMK-ATAKAS

Open Joint Stock Company Magnitogorsk Iron and Steel Works

MMK COMPLETES CONSTRUCTION OF MMK-ATAKAS METALWORKS

Commissioning of continuous hot-dip galvanizing unitat MMK-Atakas Istanbul site marks final stage of project

Today Magnitogorsk Iron andSteel Works (MMK) announced the launch of the MMK-Atakas continuous hot-dip galvanizing unit in Istanbul. This marks completion of construction of the MMK-Atakas metallurgy complex, which is located at two sites: in Iskenderun and Istanbul. The construction of the Iskenderun facility was completed in spring 2011.

The Istanbul plant's capacity is 450 ktpa of galvanised steel. A portion of the output will be sold directly to customers, while the remainder will be further processed at the colour coating line, which was commissioned in May 2011, with a capacity of 200 ktpa.

MMK already commissioned an identical hot-dip galvanizing unit in Iskenderun, giving the company greater product flexibility and the ability to produce specialized rolled metal products for customers, including home appliance manufacturers and, in the future, carmakers.

The annual production capacity of MMK-Atakas is 2.3 mt of hot-rolled coils, 750 kt of cold-rolled coils, 900 kt of galvanised coils and 400 kt of colour coated coils.

MMK Board of Directors Chairman Victor Rashnikov said: "The total investments in the project exceeded $2 bln. The most advanced production technology installed at MMK-Atakas has no analogues in Turkey. This new facility will meet growing Turkish demand for a range of metal products and enable us to export products to the Middle East, Mediterranean region and Europe. The fact that the construction of MMK-Atakas was not affected by the global financial crisis is noteworthy: construction was completed on schedule and within budget."

About MMK

Open Joint Stock Company MMK is among the world's largest steel producers and is one of the leaders of Russia's steel industry. The company's operations in Russia include a large steel producing complex encompassing the entire production chain, from preparation of iron ore to downstream processing of rolled steel. MMK turns out a broad range of steel products with a predominant share of higher value added products. In 2010 the MMK Group produced 11.4 mln tons of crude steel and 10.4 mln tons of commercial steel products

MMK Communications Department