MMK is implementing a programme which modernises and expands the corporate system, solving the task of integrating all information flows of MMK Group's divisions.
Since November 2020, four more of the Group's production companies (Avtotransport Management, Magnitogorsk Cement and Refractories Plant, Ogneupor and MMK-COAL) have launched a project to create a corporate information system (CIS) based on Oracle e-Business Suite V. 12 (OeBS).
The CIS implementation specifics at the new stage are characterised by simultaneous coverage of various industry enterprises: MMK-COAL is the largest Russian company in the production of coking coal and coal concentrate. The main feature of MMK-COAL is that the company uses its own coal extracted at two mines and its own processing plant to produce coal concentrate of the Z brand, one of the most popular brands on the market.
Ogneupor is one of the leading manufacturers of refractories in Russia. The company ranks 3rd in the production of aluminosilicate (fireclay) refractories, and 2nd in the production of magnesia (periclase-carbon) refractories. Production is carried out both on the basis of state standards and individually according to the customer's designs.
Avtotransport Management (ATU) is one of the largest transport companies in the southern Urals. The company's main activities are the transportation of metallurgical and mining goods and the repair and maintenance of trucks, cars and automotive equipment.
Magnitogorsk Cement and Refractories Plant is one of the leading enterprises in the southern Urals specialising in slag and Portland cements. The company's product range includes, among other things, the production of hardened dolomite and hardened lime which are used in the production of steel at MMK's oxygen converter shop. In recent years, the company has carried out a considerable production modernisation programme.
The transition to the new system will take place remotely because of restrictions related to COVID-19.
'The result of implementing a unified CIS in the Group will be a modern automated system for managing business processes, which, while increasing their transparency, will allow managers to speed up the process of making the most effective management decisions and, as a result, will lead to an increase in the efficiency of MMK Group's business. The unified CIS serves as the foundation for implementing projects included in the digital transformation portfolio,' notes Andrey Eremin, Director of Economics at MMK.
'This is the third stage of a major programme for the transition to Industry 4.0 digital technologies, which MMK Group has been successfully implementing over the past three years. During the implementation of the programme, MMK Group has formed a professional and competent project team, and I am confident that they will easily manage the implementation of the third stage,' said Denis Smirnov, Consulting Director at Oracle CIS.
The project is due to be implemented in a short time frame, with the corporate information system being introduced in the companies in stages in July and October 2021.
About Magnitogorsk Iron and Steel Works
MMK is one of the world's largest steel producers and a leading Russian metals company. 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 high-value-added products. In 2019 MMK Group produced 12,5 million tonnes of crude steel and 11,3 million tonnes of commercial steel products. MMK Group had sales in 2019 of USD 7,566 million and EBITDA of USD 1,797 million.
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