OREANDA-NEWS. OJSC Magnitogorsk Iron and Steel Works ("MMK" or “Company”) reports that it saved \\$254 mln in 2014 as a result of coordinated efforts across the Company’s production and functional departments.

The result was achieved due to improved work management during major repairs and equipment modernisation (\\$75 mln); the optimisation of material flows and raw materials structure, as well as technical measures enacted (\\$57 mln); the reorganisation of fixed asset technical maintenance and the use of innovative materials (\\$114 mln). Management cost optimisation delivered another \\$8 mln in savings.

MMK achieved such significant savings in costs and resources thanks to the implementation of its Cost-Cutting Programme. In line with previous years, MMK put considerable effort into reducing its consumption of materials, energy and other resources. The Company focused on improving resources expenditure control and monitoring systems.

MMK CEO Pavel Shilyaev noted:

“We will continue looking for ways to unlock further potential for enhancing efficiency in 2015. We plan to pay particular attention to innovations, and improving our innovation-adoption system by encouraging as many as possible employees to express their technical creativity.”