United Shipbuilding Corporation (USC) and Magnitogorsk Iron & Steel Works (MMK Group) have signed a Memorandum of Understanding for strategic cooperation, MMK said Tuesday.
The two parties have agreed on establishing a joint scientific and technical cooperation for innovative products in shipbuilding and for enhancement of logistics solutions for steel supplies from MMK to the yards of USC.
"It is well known that shipbuilding industry is, perhaps, the major metal products consumer. In this regard, USC believes that strategic cooperation of Russian shipbuilders with MMK Group will promote healthy competition in the domestic market of shipbuilding steel, which is especially important in view of strong growth in newbuilds orders in Russia," the Corporation President Roman Trotsenko said.
MMK CEO Boris Dubrovsky said: “MMK’s Mill 5000 is one of the most advanced production facilities for heavy-gauge plate steel, and we are going to expand across the shipbuilding market. This possibility is closer to becoming a reality today, and we are happy with the agreements we have reached with USC. MMK has the capacity to fully meet the requirements of Russia’s shipbuilding sector, which will soon become a major driver of domestic economic growth.”
United Shipbuilding Corporation was founded in 2007 as a 100-percent state-owned group of companies by the Presidential Decree № 394 (March 21, 2007). UCS currently incorporates three regional shipbuilding centers, nine engineering and design offices and 39 dockyards. The Corp’s largest shipbuilding assets include Kaliningrad-based JSC Yantar Shipyard, JSC Admiralty Shipyards (St. Petersburg), JSC PA Sevmash (Severodvinsk), JSC DVZ Zvezda (Vladivostok). Besides, UCS holds a 50% stake in Arctech Helsinki Shipyard, a joint venture with STX Finland Cruise Oy.
The Corporation participates in several major international projects: construction of a new mega shipyard Zvezda-DSME through a JV with Daewoo Shipbuilding & Marine Engeneering (South Korea), the construction jointly with Yantai Raffles (Singapore) of Vostok-Raffles Shipyard. In 2010, USC posted total revenue of RUB135 billion. Currently, USC consolidates about 70% of the domestic shipbuilding industry. The Group focuses on the Russian market, but also exports its products to 20 countries.
Magnitogorsk Iron and Steel Works (MMK Group) is the third largest steel company in Russia and is one of the world's largest steel producers. MMK's assets in Russia include a large steel producing complex encompassing the entire production chain, from preparation of iron ore to downstream processing of rolled steel. In 2010 the company produced 11.4 million tons of crude steel and 10.4 million tons of commercial steel products. MMK is a major supplier of metal products for the Russian shipbuilding industry. In 2009 the Group commenced production of heavy steel plates. The company’ s products intended for shipbuilding are certified by Russian Maritime Register of Shipping, Russian River Register, by Det Norske Veritas and Germanischer Lloyd.