OREANDA-NEWS. According to the press-service of the Magnitogorsk Iron & Steel Works (MMK), on September 6, 2007, Valentina Matvienko, Governor of St.Petersburg, and Victor Rashnikov, President of the MMK Managing Company, signed an Investment Agreement.

According to the document, by 2010 OJKSC MMK intends to build a stamping plant and a service center in St.Peterburg.

Investment in the construction of the stamping plant is to total RUB 3 bn.

"At the initial stage, up to 2010, it is expected that that the plant will process a total of 125,000 metric tons of steel per year. Further on the capacity may be expanded to 300,000 tonnes per year. This project is in line with the strategic priorities of our Company as it will allow to strengthen our presence in the North-West Region, add more value to our products and ensure maximum satisfaction of the customers' needs," said Mr.Rashnikov who is also the Chairman of the Board of Directors of OJSC MMK.

Products of the new plant which will comprise steel sheet blanks, stamped panels, and stamped and welded parts, are intended for the manufacturing of car bodies at the assembly plants of such companies as Ford, Toyota, General Motors, Nissan, etc. which are already in operation or under construction in Russia, and also as components for white goods manufactured in Russia or abroad at the plants of Bosch-Siemens, Electrolux, and others. Products of the new service center will target the construction sector, mechanical engineering, ship-building and other industries in Saint Petersburg and the Leningrad Region. Direct supplies of high quality sheet steel from the Magnitogorsk Iron and Steel Works and their processing at the plant and the service center will provide the synergy required to meet the requirements of steel consumers in the best possible way.

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The Magnitogorsk Iron and Steel Works OJSC ranks 20th among the world's largest steel producers (according to IISI) and is one of the leaders of Russia's steel industry (according to Chermet data).

The Company is 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 value added goods.

In 2006, the Company produced 12.5 metric tons of crude steel, and 11.3 metric tons of commercial products. Sales under US GAAP amounted to USD 6.4 bn, with net profit standing at USD 1.4 bn.