MMK expects an economic impact of 6.8 billion rubles from the implementation of 95 digital projects

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AK&M 13 January 2026 12:25

Magnitogorsk Iron and Steel Works (MMK PJSC) expects an economic effect from the implementation of the first stage of the digitalization strategy in the amount of 6.8 billion rubles by the end of 2025. This was stated by Nikolay Gladkikh, Head of the Quality System and Process Management at MMK PJSC, during a round table organized by Roskachestvo.

A total of 95 projects were implemented between 2020 and 2024. Investments in the implementation of the first stage of the strategy amounted to 3.9 billion rubles, and the average payback period for projects is 2.4 years. "The Optimal Cast Iron system has brought the maximum economic effect, aimed at optimizing aglocoxodomain production, as well as the introduction of an optimization planning system. Of the 95 implemented projects, 51 involved artificial intelligence technologies, which correlates with the global trend of AI technologies coming to the forefront in the digital transformation of industry. Last year, we decided to combine all MMK's competence centers dealing with various AI technologies into a single artificial intelligence center. The center, established in March 2025, made it possible to more effectively implement AI–based projects and unify the components of the digital AI platform," said Nikolai Gladkikh.

The company attaches great importance to digitalization in the field of quality. Thus, the implemented dynamic technological risk management system identifies non-standard operating modes and production situations with violations of technological parameters. In case of a high risk of receiving nonconforming products, the system notifies specialists, automatically generates an interactive technical map and adjusts the technological process. This is done using predictive analytics and an adaptive management system. The project has been implemented in all the main production streams of the plant, from oxygen converter and electric steelmaking workshops to hot and cold rolling workshops and coated metal production.

Another project aimed at ensuring high-quality products is currently being implemented - Digital Quality Analysis. "By 2028, we plan to create a corporate online platform for monitoring production processes and providing services to consumers. Its functionality will provide automatic calculation of key performance metrics, eliminate uncertainty and the human factor in product quality control and certification," said Nikolai Gladkikh. This platform solution will ensure the transition to the principle of mandatory technology execution control and response to violations of critical parameters based on an individual checklist. The implementation of the project will also make it possible to switch to the dynamic principle of process control and the preventive principle of quality management based on predictive models.

Another project launched in 2025, Production Culture, involves the active participation of the plant's employees in solving various production issues and is designed to ease the working conditions of employees. Workshop staff can send their suggestions related to the improvement of technological processes and issues related to product quality, occupational safety and the creation of conditions for effective work to the workshop management using a convenient mobile application. The pilot was sheet-rolling workshop No. 11, with plans to introduce the "Production Culture" project in other workshops of the plant.