Home / Press Releases / PJSC Magnitogorsk Iron and Steel Works implements a business digitalization program with the assistance of Deloitte CIS

PJSC Magnitogorsk Iron and Steel Works implements a business digitalization program with the assistance of Deloitte CIS

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MMK is currently implementing more than 20 projects under the Industry 4.0 corporate program, dozens of projects have already been completed and their results are in operation. Digital solutions are implemented at all stages of finished product creation.

For example, when purchasing coal concentrate, an optimization model is used to assess its quality and supply volumes, taking into account economic, logistic and other parameters. At the production site, an automated information system "Optimal pig iron" is being created to determine the requirements for the quality of coke, sinter, the structure of iron ore raw materials and parameters of hot blast.

At the sales stage, an optimizer for the formation of ship parties in ports is used, the work of which is synchronized with the process of forming production schedules, and a model for forecasting the demand for finished products is being developed.

Power engineers use the digital twin of the turbine to select optimal operating parameters and continue to improve the energy management platform, which allows personalizing the contribution of employees to saving energy.

To improve the efficiency of equipment maintenance and repair, an intelligent life cycle system of the USC has been launched for modeling and planning control, monitoring and lifecycle management of equipment.

All MMK divisions are actively involved in the study and implementation of digital solutions. The result of this work is more than 250 initiatives in 20 functional areas that will improve the efficiency of MMK's strategy implementation.

MMK's Economic Director Andrey Eremin said: “The use of modern technologies at MMK is an established practice. An extensive list of digital initiatives was formed in approximately equal parts of what was previously discussed at MMK, and new products proposed by Deloitte from the cross-industry global experience of digitalization. It contains solutions of varying complexity - from the digital twin of the blast furnace to advanced analytics based on predictive models. In the future, we will carefully study the availability and effectiveness of the selected initiatives, as well as identify the most priority ones and determine the procedure for their implementation within the framework of MMK's digitalization strategy. "

“MMK is focused on improving the efficiency of its core activities, therefore, among the selected initiatives, solutions for labor digitalization and asset management dominate. At the same time, all supporting divisions appreciated the transformation potential. This indicates a readiness for balanced development and the use of cross-functional digital solutions ", - comments Alexander Oleinik, Director of Strategy and Operational Efficiency, Consulting Department, Deloitte.


PJSC "Magnitogorsk Metallurgical Plant" is one of the world's largest steel producers and holds a leading position among Russian ferrous metallurgy enterprises. The company's assets in Russia represent a large metallurgical complex with a full production cycle, from the preparation of iron ore raw materials to the deep processing of ferrous metals. MMK manufactures a wide range of steel products with a predominant share of high value-added products. In 2018, MMK Group produced 12.7 million tonnes of steel and sold 11.7 million tonnes of steel products. MMK Group's revenue in 2018 amounted to $ 8.214 billion, EBITDA - $ 2.418 billion.

About Deloitte CIS

Deloitte brings together over 286.2 thousand specialists and today is the world's largest company providing audit and consulting services and operating in more than 150 countries. Deloitte offers a depth, breadth and quality of professional knowledge that is unparalleled to meet the needs of clients in various industries.

Deloitte CIS is one of the leading international firms providing services in the field of audit, consulting, financial consulting, risk management and tax and legal consulting, using the professional experience of about 3,700 employees in 20 offices in 11 countries of the region. To date, Deloitte offices are open in Moscow, St. Petersburg, Ufa, Yekaterinburg, Yuzhno-Sakhalinsk, Novosibirsk and Vladivostok (Russia), Kiev (Ukraine), Minsk (Belarus), Tbilisi (Georgia), Baku (Azerbaijan), Aktau, Almaty, Nur-Sultan and Atyrau (Kazakhstan), Bishkek (Kyrgyzstan), Tashkent (Uzbekistan), Dushanbe (Tajikistan), Ashgabat (Turkmenistan) and Yerevan (Armenia).

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